Beltz company is considering the replacement of a machine that is presently used in the production of its product. The following data are available
Old Equipment Replacement Equip
Original cost $100,000 $60,000
Useful life in yrs 15 7
current age in yrs 8 0
book value $45,000 -
Disposal Value $28,000 -
Disposal Value 7yrs 0 0
Annaul cash operating $12,000 $9,000
Required
Ignoring income taxes, indicate the best alternative for Beltz Co. Provide computations to support your decision.