=+PR 25-1A Differential analysis report involving opportunity costs obj. 1 Flint Tooling Company is considering replacing a machine that has been used in its factory for two years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:

Old Machine Cost of machine, eight-year life $48,000 Annual depreciation (straight-line) 6,000 Annual manufacturing costs, excluding depreciation 14,500 Annual nonmanufacturing operating expenses 2,900 Annual revenue 29,600