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Differential Analysis for Machine Replacement Proposal Frankin Printing Company is considering replacing a machine that has been used in its factory for 4 years. Relevant

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Differential Analysis for Machine Replacement Proposal Frankin Printing Company is considering replacing a machine that has been used in its factory for 4 years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Annual nonmanufacturing operating expenses and revenue are not expected to be arfected by purchase of the new machine. 1. Prepare a differential analysis as of November 8 to determine whether to Continue with Old Machine (Alternative 1) or Replace Oid Machine (Aternative 2). The analysis should indicate the differential profic that would result over the 6 yyear period if the new machine is acquired. If an amount is zero, enter zero " 0 ". 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) 2. What other factors should be considered before a final dedsion is reached? a. Are there any improvements in the quality of work turned out by the new machine? b. What opportunities are available for the use of the funds required to purchase the new machine? c. Are there any improvements in the quality of work turned out by the new machine and what opportunities are avallable for the use of the funds required to purchase the new machine? d. What affect would this decision have on employce morale?. e. None of these choices is correct

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