Tesla management are trying to decide whether to keep an older piece 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 $\backslash (\backslash$$ $316,000\backslash )$ has a current book value using straight$-$line depreciation of $\backslash (\backslash$$ $178,000\backslash )$; its operating expenses are $\backslash (\backslash$$ $31,000\backslash )$ per year. A replacement machine would cost $\backslash (\backslash$$ $234,000\backslash ),$ have a useful life of eleven years, and would require $\backslash (\backslash$$ $12,000\backslash )$ per year in operating expenses. It has an expected salvage value of $\backslash$$$66,000$ after eleven years. The current disposal value of the old machine is $\backslash (\backslash$$ $78,000\backslash )$; if it is kept eleven more years, its residual value would be $\backslash (\backslash$$ $15,000\backslash ).$

Required

Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced?