Replace Equipment residual value. The new machine would reduce annual direct labor costs from $$49,700$ to $$39,800.$

Differential Analysis

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

June $2$

$\backslash$table$[[$Line Item Description,$\backslash$table$[[$Continue$],[$with Old$],[$Machine$],[($Alternative $1)]],\backslash$table$[[$Replace$],[$Old$],[$Machine$],[($Alternative $2)]],\backslash$table$[[$Differential$],[$Effects$],[($Alternative $2)]]],[$Revenues:$],[$Proceeds from sale of old machine :$],[$Costs:$],[$Purchase price$],[$Direct labor $(6$ years$)],[$Profit $($loss$),,,]]$