Differential Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $66,000, the accumulated depreciation is $26,400, its remaining useful life is 5 years, and its residual value is negligible. On October 1 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $137,300. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the managerial accountant accumulated the following annual data on present and proposed operations: a. Prepare a differential analysis dated October 1 to determine whether to continue with (Aternative 1 ) or feplace (Alternative 2) the old machine. Prepare the analysis over the useful life of the new machine. If an amount is zero, enter " 0 ", If required, use a minus sign to indicate a loss. b. Based only on the data presented, should the proposal be accepted