Tesla management are trying to decide whether to keep an older plece of machinery or buy a replacement. Management was presented with the following Information to assist in their decision: A machine purchased three years ago for $309,000 has a current book value using straight-line depreciation of $178,000; its operating expenses are $33,000 per year. A replacement machine would cost $225,000, have a useful life of nine years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $71,000 after nine years. The current disposal value of the old machine is $81,000; If it is kept nine more years, its residual value would be $19,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced?