On 1/1/A, Cooper is considering replacing an old machine with a new machine. The old machine has a book value of $40,000 on 1/1/A with a 4-year remaining useful life. Salvage value is estimated to be $10,000 at the end of 4 years. Straight-line depreciation is used. The old machine could be sold on 1/1/A for $61,000. The new machine has a cash cost of $122,000 with an expected useful life of 4 years. Straight-line depreciation is used with a 0 estimated salvage value. Cooper's tax rate is 30% and the cost of capital is 16%. The new machine will save cash operating costs of $29,000 each year for all 4 years. The old machine can be sold for $24,000 at 12/31/D. The new machine can be sold for $3,000 at 12/31/D. The following present value figures are appropriate at 16% : Prepare an analysis to decide whether it is better to keep the old machine or replace with a new machine. Show supporting calculations