1. Keep or replace equipment: Bert Company is considering replacing a machine that is presently used in the production of its product. The following data are available:

Replacement

Old Machine Machine

Original cost $57,000 $35,000

Useful life in years 17 5

Current age in years 12 0

Book value $39,000 -

Disposal value now $8,000 -

Disposal value in 5 years 0 0

Annual cash operating costs $7,000 $4,000

The difference in cost over the next 5 years between keeping the old machine and replacing the old machine, ignoring income taxes and time value of money, is ________________________________

note: please don't just give answers, and i want more process!