Machine Replacement Dedsion A company is considering replacing an old piece of machinery, which cost $600,700 and has $352,900 of accumulated depreciation to date, with a new machine that has purchase price of $485,400. The old machine could be sold for $64,100. The goal variable production costs associated with the old machine an estimated to be $158.600 per year for eight years. The annual variable production costs for the new machine an estimated to be $9,500 per year for eight years . Prepare a differential analysis dated April 29 to determine whether to continue wien (Alternative 1) or replace (Alteenute 2the old machine. If an amount is zero, entero".For thone bi in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Continue with Old Machine CAR, 1) or Replace Old Machine (Alt.) April 20 Continue Replace Differvitial with Old effect Machi Machine ont to (Alternativ 1) (Alternative 2) (Alternative 2) Revenge proceeds from sale of machine Cost: Purchase price Variable production costs (years) Income (0) Denemine whether to continue wintert 1 of 4 Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Continue Replace Differential with Old old Effect Machine Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Variable productions costs (8 years) Income (Loss) Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machin b. What is the sunk cost in this situation? The sunk cost is $