Hi I need the formulas for this problem please.

Machine Replacement Decision Obj. 1 A company is considering replacing an old piece of machinery, which cost$400,000 and has $175,000 of accumulated depreciation to date, with a new machine that has a purchase price of $550,000. The old machine could be sold for $250,000. The annual variable production costs associated with the old machine are estimated to be $72,500 per year for eight years. The annual variable production costs for the new machine are estimated to be $24,000 per year for eight years. a. Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2 ) the old machine. b. What is the sunk cost in this situation