Machine Replacement Decision

the old machine are estimated to be $$156,400$ per year for $8$ years. The annual variable production costs for the new machine are estimated to be $$100,900$ per year for $8$ years

Differential Analysis

Continue with $($Alt$.1)$ or Replace $($Alt$.2)$ Old Machine

December $10$

a$.2$ Determine whether to continue with $($Alternative $1)$ or replace $($Alternative $2)$ the old machine.

Continue with the old machine $$

b$.$ What is the sunk cost in this situation?

The sunk cost is $