Machine Repiacement Decision A company is considering replacing an old piece of machinery, which cost $600,600 and has $347,200 of accumulated depreciation to date, with a new machine that has a purchase price of $484,100. The old machine could be sold for $63,500. The annual variable production costs associated with the old machine are estimated to be $156,600 per year for 8 years. The annual variable production costs for the new machine are estimated to be $100,600 per year for 8 years. a.1 Prepare a differential analysis dated December 10 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. a.2 Determine whether to continue with (Alternative 1 ) or replace (Alternative 2 ) the old machine. Feedback Check My Work b. What is the sunk cost in this situation? The sunk cost is $ Machine Repiacement Decision A company is considering replacing an old piece of machinery, which cost $600,600 and has $347,200 of accumulated depreciation to date, with a new machine that has a purchase price of $484,100. The old machine could be sold for $63,500. The annual variable production costs associated with the old machine are estimated to be $156,600 per year for 8 years. The annual variable production costs for the new machine are estimated to be $100,600 per year for 8 years. a.1 Prepare a differential analysis dated December 10 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. a.2 Determine whether to continue with (Alternative 1 ) or replace (Alternative 2 ) the old machine. Feedback Check My Work b. What is the sunk cost in this situation? The sunk cost is $