Machine Replacement Decision Creekside Products Inc. is considering replacing an old plece of machinery, which cost $3,422,000 and has $2,007,000 of accumulated depreclation to date, with a new machine that costs $2,572,800The old rmachine could be sold for $406,200. The annual variable production costs associated with the old machine are estimated to beSL285,200 for six years. The annual varlable production costs for the new machine are estimated to be $886,800 for six years. a. Determine the total and annualized differential income or loss anticipated from replacing the old machine Net differential Annual differential b. What is the sunk cost in this situation