Machine Replacement Decision A compsny is considering replocing an old piece of machinery, which cost 5600,700 and has $349,200 of accumulated deprecietion to date, with a new mechine that has a purchase price of $486,500. The old machine could be sold for $64,400. The annuai variable proouction costs associated with the oid machine are estimated to be 5157,500 per year for 8 years. The annual variable production costs for the new machine are estimated to be s98, 600 per year for 8 years a.1 Prepare a differentiol onalymas dated December 10 to determine whether to continue with (Aitemotive 1) or-reploce (Aiternative 2) the old mochine. If an amount is zero, enter "o*, If required, use a minas sign to indicote a loss: a.2 Determine whether to continue with (Aiternative 1) or replsce (Aternative 2) the old machine. 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 cost is $