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A company is considering replacing an old piece of machinery, which cost $602,500 and has $352,600 of accumulated depreciation to date, with a new machine

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A company is considering replacing an old piece of machinery, which cost $602,500 and has $352,600 of accumulated depreciation to date, with a new machine that has a purchase price of $486,600. The old machine could be sold for $64,500. The annual varlable production costs assoclated with the old machine are estimated to be $157,300 per year for eight years. The annual variable production costs for the new machine are estimated to be $99,900 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Aiternative 2 ) the old machine, If an amount is zero, enter O ". If required, use a minus sign to indicate a loss. a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 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 1

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