A company is considering replacing an old piece of machinery, which cost $599,800 and has $353,000 of accumulated depreciation to date, with a new machine that has a purchase price of $486,700. The old machine could be sold for $63,300. The annual variable production costs associated with the old machine are estimated to be $157,200 per year for 8 years. The annual variable production costs for the new machine are estimated to be $102,000 per year for 8 years.