Machine Replacement Decision A company is considering replacing an old plece of machinery, which cost $599,500 and has $351,300 or accumulated depreciation to diate, with a new machine that has a purchase price of $483,200. The old machine could be sold for $62,200. Thus annual variable production costs associated with the old machine are estimated to be $156,200 per year for eight years. The annual variable production casts for the new machine are estimated to be $102,200 per year for eight years a.1 Prepare a differentiat analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Ir 10 amount is zerg, enter 0. If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Old Machine (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Differential Effects Machine 0 0 Variable productions costs (years) Profit (LDS) a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine Previous Next ChMy Work Machine Replacement Decision A company is considering replacing an old plece of machinery, which cost $599,500 and has $351,300 or accumulated depreciation to diate, with a new machine that has a purchase price of $483,200. The old machine could be sold for $62,200. Thus annual variable production costs associated with the old machine are estimated to be $156,200 per year for eight years. The annual variable production casts for the new machine are estimated to be $102,200 per year for eight years a.1 Prepare a differentiat analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Ir 10 amount is zerg, enter 0. If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Old Machine (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Differential Effects Machine 0 0 Variable productions costs (years) Profit (LDS) a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine Previous Next ChMy Work Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Variable productions costs (8 years) Profit (Loss) 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 costi Check My Work Sand Simen for at