Differential Analysis Report for Machine Replacement Proposal Franklin Printing Company is considering replacing a machine that has been used in its factory for four 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 affected by the purchase of the new machine. 1. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. 2. What are some of the other factors that should be considered before a final decision is made? 1. Are there any improvements in the quality of work turned out by the new machine? 2. What other opportunities are available for the use of the funds that are required to purchase the new machine? 3. What effect does the federal income tax have on the decision? 4. What is the book value of the machine that will be replaced? Select the relevant factor(s) from the list above