eBook Strategn Differential Analysis for Machine Replacement Proposal Flint Tooling 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 any estimated residual value, are as follows: Old Mach Cost of machine, 10-year life $107,800 Annual depreciation (straight-line) 0,780 Annual manufacturing costs, excluding 38,700 depreciation Annual nonmanufacturing operating 11,500 expenses 95,800 Annual revenue Current estimated selling price of the 35,500 machine New Machine $138,600 Cost of machine, six-year life Annual depreciation (straight-line) 23,100 Estimated annual manufacturing costs, 8,500 exclusive of depreciation Annual non manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine