Machine Replacement Decision A company is considering replacing an old piece of machine nich cos ,700 and has $347,s00 accumulated depreciation to date, with a new machine tat has aunase price of $484,700. The did machine could be sold for $63,400. The annual variable production costs associated with the old machine are estimated to be $157,500 per year for eight years. The annual variable production costs for the new machine are estimated to be $100,800 per year for eight years. a. Prepare a differeanalysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alteraive 2) the old machine. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Differential Continue Replace Effect with Old Old on Income Machine Machine (Alternative 1) (Alternative 2) (Alternative 2) Revenues: $ Proceeds from sale of old machine Costs Purchase price Variable productions costs (8 years) Income (Loss) 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 $