eBook Calculator Differential Analysis for Machine Replacement Proposal Lexigraphic 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: Old Machine Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses $89,000 8,900 23,600 6,100 74,200 29,700 Annual revenue Current estimated selling price of machine New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, excluding depreciation $119,700 19,950 6,900 Annual romanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required tems Check My W 320 WOO@WPX COG RESUME HIGHLIGHTS .com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Calculator period if the new machine is acquired. If an amount is zero, enter "O". Use a minus sign to indicate a loss. Differential Analysis Continue with (Alt. 1) or Replace (Alt. 2) Old Machine April 30 Continue with Replace Differential Old Machine Old Machine Effect (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs Purchase price Annual manufacturing costs (6 yrs.) Proft (10) a. The federal taxes payable need not be considered for machine replacement proposal State whether the statement is true or false. False b. Identify the factor that needs to be considered for asset replacement decis on in a company (a) The quality of the machine and its working capacity (b) The federal taxes payable Check My Work 3208OW WEPXCORE RESUME HIGHLIGT Communication