Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $600,000 and has $352,100 of accumulated depreciation to date with a new machine that has a purchase price of $450,000. The old machine could be sold for $61,300. The annual variable production costs associated with the old machine are estimated to be $156,000 per year for eight years. The annual variable production costs for the new machine are estimated to be $98,500 per year for eight years. . For those owes which 2.1 Prepare a aerencia s dated Setember 13, to determine whether to continue with ( A mative 1) or replace( A rrative 2) the old machine. If an amount is ere, enter you must enter subtracted or negative numbers use a mis sign Differential Analysis Continue with Old Machine (At. 1) or Replace OM Machine ( A 2 ) September 13 Continue with Old Machine (Alternative 1) ReplaceON Machine (Alternative 2) Diferents et on income (Atome 2) Revenues Proceeds from sale of old machine Purchase price Variable productions costs year Partially correct a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Check My Work Compare the differential revenues and differential costs of continuing vs. replacing. Which one has the greatest positive differential effect on income Learning Objective 1. b. What is the sunk cost in this situation? The sunk cost is the Check My Work Incorrect Partially correct