omework Assignment i A machine purchased three years ago for $318,000 has a current book value using straight-line depreciation of $185,000; its operating expenses are $32,000 per year. A replacement machine would cost $230,000, have a useful life of ten years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $70,000 after ten years. The current disposal value of the old machine is $80,000; if it is kept 10 more years, its residual value would be $15,000. Required: a. Calculate the total costs in keeping the old machine and purchase a new machine. Koop Old Machine Purchase Now Machine Total costs es b. Should the old machine be replaced? Yes O NO