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 Exinting Equipmont Replacement quipment Cost $110,000 Cont $106,000 Operating expenses. 111,000 Operating expenses 100,000 Salvage value 24,000 Salvage value 12,000 Market value 58,000 Useful life years book value 35,000 Remaining uneful lite 9 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? Old New Total cost Should the equipment be replaced