Company X has a small machine that has a current market value of $6,000, it can be used for another 10 years, at which time it will have zero salvage value. The annual operating and maintenance costs for this machine is $15,000 per year. Due to demand, the capacity of the factory needs to be increased. We, then have the following alternatives: Alternative 1: retain the existing machine and buy another small machine at a cost of $48.000 the new machine will have a $5,000 salvage value in 10 years and O&M costs of $12,000 per year. Alternative 2: sell the existing machine and buy a new machine of larger capacity. Its purchase price will be $84,000 and will have a $9,000 salvage value in 10 years. Its O&M costs are estimated to be $24,000 per year. Carry out replacement analysis to describe on which alternative is a better choice? Why? You need to show cash flow diagrams. MARR is 12% per year.