Machine replacement decision A company is considering replacing an old piece of machinery, which cost dollar600,000 and has dollar 350,000 of accumulated depreciation to date, with a new machine that has a purchase price of dollar 545,000. The old machine could be sold for dollar 231,000. The annual variable production costs associated with the old machine are estimated to be dollar 61,000 per year for eight years. The annual variable production costs for the new machine are estimated to be dollar 19,000 per year for eight years. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. What is the sunk cost in this situation