n

Differential Analysis for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for 4 years. Relevant data as5ociated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Annuat nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required: 1. Prepare a differential analysis as of November 8 comparing operations using the present machine (Alternative 1) with operations using the new machine (Aiternative 2). The analysis should indicate the differential profit that would result over the 6 -year period if the new machine is acquired. If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) 2. What other factors should be considered before a final dedshen is reached? are Are there any improvements in the quality of work turned out by the new machane? b. What opportunites are avallable for the use of the funds required to purchase the new machine? c. Are there any imorovements in the quality of work tumed out by the new machine and withat opportunties are avaliable for the use of the funds 2. What other factors should be considered before a final decision is reached? a. Are there any improvements in the quality of work tumed out by the new machine? b. What opportunities are avaliable for the use of the funds required to purchase the new machine? c. Are there any improvements in the quality of work turned out by the new machine and what opportunitieg are available for the use of the funds required to purchase the new machine? d. What affect would this decision have on employee morale? e. None of these choices are correct