Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost 5598,700 and has $350,100 of accumulated depreciation to date, with a new machine that has a purchase price of $483,700. The old machine could be sold for $63,600. The annual variable production costs associated with the old machine are estimated to be 5158,200 per year for eight years. The annual variable production costs for the new machine are estimated to be 109,700 per year for eight years al prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Wan amount is zero, enter "O". If required, use a minus sign to indicate a los Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Ola Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Variable productions costs (8 years) Old Profit (Loss) a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Variable productions costs (8 years) Profit (Loss) Check My W For the continue and replace alternatives subtract the costs from the revenues. Multiply the variable production costs for the eight Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Replace the old machine x wa Check We Compare the differential revenues and differential costs of continuing vs. replacing. Which one has the greatest positive differential b. What is the sunk cost in this situation? The sunk cost is s