Differential Analysis for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for two years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine $38,000 Cost of machine, eight-year life Annual depreciation (straight-line) 4,750 Annual manufacturing costs,excluding depreciation 12,400 Annual nonmanufacturing operating expenses 2700 Annual revenue Current estimated selling priceofthe machine 12900 New Machine $57,000 Cost of machine, six-year life Annual depreciation (straight-line) 9,500 Estimated annual manufacturing oosts, exclusive of depreciation 3,400