A company is considering replacing an old piece of machinery, which cost $598,200 and has $349,300 of accumulated depreciation to date, with a new machine that has a purchase price of $487,000. The old machine could be sold for $64,000. The annual variable production costs associated with the old machine are estimated to be $157,300 per year for eight years. The annual vanable production costs for the new machine are estimated to be $101,600 per year for e.ght years. a.1 Prepare a differentlal analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Aternative 2) the old machine. If an amount is zero, enter "0*, If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) a.2 Determine whether to continue with (Alternative 1) or replace (Altemative 2) the old machine. a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is $