2. 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 Annual depreciation (straight line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses Annual revenue Current estimated selling price of the machine $40,000 5,000 12,400 2,900 35,400 13,900 New Machine Cost of machines, six year life Annual depreciation (straight line) Estimated annual manufacturing cost, less depreciation $59,000 9,500 3,900 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Normal Question 2 Instructions a. Prepare a differential analysis as of November 8 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. b. List other factors that should be considered before a final decision is reached