Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Ah. 2) Ma4 Continue with --m'.jm- Differential Effect Old Machine _ Old Machine nn Income _ (Alternative 1) (Alternative 2} - - ternative 2} - o -. Revenues: '_ Sales (5 years} Costs:- Purchase price _ Direct materials [5 years) Direct labor {5 years) Power and maintenance (5 years) Taxes, insurahce. etc. (5 years) Selling and admin. expenses (5 years) Income (loss)