Machine Replacement Decision Torrey products Inc. is considering replacing an old piece of machinery, which cost $350,000 and has $115,000 of accumulated depreciation to date, with a new machine that costs $420,000. The old equipment could be sold for $90,000. The annual variable production costs with the old machine are estimated to be $75,000 for ten years. The annual variable production costs for the new machine are estimated to be $39,000 for ten years. Determine the total and annualized differential income or loss anticipated from replacing the old machine. Enter all amounts as positive numbers. What is the sunk cost in this situation