Differential Analysis Report for Machine Replacement Proposal value, are as follows: Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Required: 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