Q$-8)$ Company $x$ has an existing machine which is straight line depreciated to process its invoices. Following

information pertains to this machine.

The company is considering replacing this machine with a new one. New machine will cost TL$100,000$ and will

have $3$ years useful life. Per annum operating costs of the new machine are TL$80,040.$

Determine if the company should retain or replace the existing machine ignoring the time value of money. Note

enter $1$ if the machine is retained, enter $2$ if the machine is replaced.