Problem: Module 6 Textbook Problem 10 Learning Objective: 6-5 Make appropriate asset replacement decisions Stuart Company is considering the replacement of some of its manufacturing equipment. Information regarding the existing equipment and the potential replacement equipment follows Existing Equipment Replacement Equipment Cost $117,000 Cost $105,000 Operating expenses 114,000 Operating expenses 98,000 Salvage value 26,000 Salvage value 12,000 Market value 57,000 Useful life 7 years Book value 36,000 Renaining useful life 7 years "The amounts shown for operating expenses are the cumulative total of all such expected expenses to be incurred over the useful life of the equipment Required Calculate the total relevant cost of existing equipment and the potential replacement equipment. Should the equipment be replaced? New Old Total cost Should the equipment be replaced