A company is considering replacing an eldrecot machinery, which cost $597,600 and has 134,000 of sculated detto dit with a new machine that has purchase price of 34,000. The machine could be told for $62.700. The mus variable production et asociated wer med match are estimated 4 pm 5156,000 per year for eight was the armual variable production costs for the new machiner estimated to be $100,000 per year for eight years. 2.1 Prepare a diturunkiai serial in diated Play 21 to determine whether to continue win crematie 1) or replica ormative 2) che la machine an amount is zeroentro, use le tipo de Differential Analysis Continue with old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with on Old Differential Machine Machine Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenue Proceeds from we of old machine casts Purchase price Variable production cost (yes) Profit IT 4.2 Determine whether to continue with (Alternative 11 or place (Alternativ) the old machine . What the cost in the in The sunk cost Machine Replacement Decision A company is considering replacing an oid Diece of machinery, which cost 502.000 and has 348,000 tocumulated depreciation to a woh a machine that has 1,001 The could be sold for 162.700. The annual variable production costs urocated with the admitere estimated to be $150.000 per year. The annual artists for the reader estimated to be $100,000 per year for might years a. 1 Prepare a trential analysis dated May 29 to determine whether to continue with Alter 1) or receive the dracht amount is meer Differential Analysis Continue with Old Machine (Alt 1) or Replace Old Machine (A2) May 20 Continue Replace with Old Old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Variable productions costs (years) Profit (Loss) di 0 000 bu native 3) the old machine b. What is the sunk cost in this situation? The sunk cost is