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culator erential Analysis for Machine Replacement Proposal nklin Printing Company is considering replacing a machine that has been used in its factory for four years.

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culator erential Analysis for Machine Replacement Proposal nklin Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine st of machine, 10-year life nual depreciation (straight-line) nual manufacturing costs, excluding depreciation nual nonmanufacturing operating expenses nual revenue rent estimated selling price of the machine $109,300 10,930 38,900 12,800 95,700 34,900 New Machine $138,600 23,100 18,100 t of machine, six-year life ual depreciation (straight-line) imated annual manufacturing costs, exclusive of depreciation ual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. uired: Prepare a differential analysis as of November 8 comparing operations using the present machine (Alternative 1) with operations using the new machin ernative 2). The analysis should indicate the total differential Income that would result over the six-year period if the new machine is acquired. If an Previous

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