Question: please help and expain i have a final thank you. Differential Analysis Practice Quiz replacing a machine that has been used for four years. e

please help and expain i have a final thank you. please help and expain i have a final thank you. Differential Analysis

Differential Analysis Practice Quiz replacing a machine that has been used for four years. e neither the new or old machine has a residual value Yearly revenue and nonmanufacturing expenses are not e Yearly Old Machine Cost, 10 year life Annual Depreciation 108,000 10,800 Annual Manufacturing Costs (exci. Dep.) N Annual nonmanufacturing expenses Annual revenue 38,600 12,300 95,000 Selling price of machine 35,900 Cost, 6 year life Annual Depreciation Annual Manufacturing Costs texcl. Dep) 138,000 23,000 18,200 1. Prepare a crential anaysis comparing present machine (Alt. 1) to new anaysis machine (Alt. 2). Analysis should indicate total differential income over the six-year period if the new machine is purchased. Differential New Machine Old Machine (Alt. 2) Income Revenues 5,00 0 Costs Income (Loss) Which Alternative would you propose? What other factors should be considered? What if you could invest the funds required to purchase the new equipment (cost less oceeds from sale of old machine) at 5% per year. In other words, what is the opportunity st associated with the decision? Does this change your position

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