A company is considering replacing an old piece of machinery, which cost $599,300 and has $347,500 of accumulated deprecation to date, with a new machine that has a purchase price of $484,100. The old machine could be sold for 563,500. The annual variable production costs associated with the old machine are estimated to be $154,600 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,200 per year for eight years. a. Prepare a differential analysis dated April 29 ta determine whether to continue with (Alternative 1) or replace (Altcmative 2) the old machine. If an amount is zero, cnter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Continue Replace Differential with Old old Effect Machine Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of ald machine s6,500 $62,50 Costs Purchase price Variable productions costs (8 years) Income (Lass) Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cast in this situation? The sunk cost is