Ditferential Analysis for Machine Rroplacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic componcnts. The original cost of the machine is $93,300, the accumulated depreciation is $37,300, its remaining useful life is five years, and its residual value is negligible. On Moy 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $194,100. The automatic machine has an estimated vseful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations: ther to continue with the old machine (Altemative 1) or replace the old machine (Alternative 2). Prapare in amount is zero, enter " 0 : If required, use a minus sign to indicate a loss. Differential Analysis b. Bosed only on the data presented, should the proposal be accepted? c. Differences in capsoty between the two alternatives is to consider before a final decision is made