Question: is this better ? Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $599,000 and has $351,500 of accumulated

 is this better ? Machine Replacement Decision A company is considering
is this better ? replacing an old piece of machinery, which cost $599,000 and has $351,500

Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $599,000 and has $351,500 of accumulated depreciation to date, with a new machine that has a purchase price of $485,000. The old machine could be sold for $62,500. The annual variable production costs associated with the old machine are estimated to be $157,200 per year for eight years. The annual variable production costs for the new machine are estimated to be $98,900 per year for eight years. a. 1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "O". If required, use a minus sign to indicate a loss. Derin Alternative Are Alle 23 a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is $ Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $599,000 and has $351,500 of accumulated depreciation to date, with a new machine that has a purchase price of $485,000. The old machine could be sold for $62,500. The annual variable production costs associated with the old machine are estimated to be $157,200 per year for eight years. The annual variable production costs for the new machine are estimated to be $98,900 per year for eight years. a. 1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Diferencial Analysis Continue with Old Machine (A. 1) or Replace Old Machine ( A 2 ) Come with Ond Machine (Alterative ) A Replace e rential Machine Effects mative 2) Alternative 2) Proceeds from sale of old machines Co Purchase price Vare productions years Proto a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is $

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