Differential Analysis Report for Machine Replacement Proposal Franklin Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has an estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $107.000 Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation 37.900 Annual nonmanufacturing operating expenses 10.700 13,100 46,000 Annual revenue 35.400 Current estimated selling price of the machine New Machine 3135.600 Cost of machine, six year lite Arcul depreciation straight-line 22.800 Annual manufacturing costs, excludilo depreciation 17.700 Annus nonmanufacturing operating expenses 10.000 Annust nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the race 1. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Franklin Printing Company Proposal to Replace Machine Differential Analysis Report Number of years applicable 2. What are some of the other factors that should be considered before dechion is made 1. Are there any improvements in the ear of work turned out by the machine 2. What other opportunities are available for the use of the funds that are wired to purchase the Chine 3. What toct does the federal income tax have on the edition 4. What is the book value of the machine that will be replaced Proposal to Replace Machine Differential Analysis Report Number of years applicable