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Flint Tooling Company is considering replacing a machine that has been used in its factory for 4 years. Relevant data associated with the operations of

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Flint Tooling 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: 1. Prepare a differential analysis as of November 8 to determine whether to Continue with Old Machine (Alternative 1 ) or Replace Old Machine (Alternative 2). The analysis should indicate the differential profit that would result over the 6 -year 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. 2. What other factors should be considered before a final decision 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 available for the use of the funds required to purchase the new machine? d. What affect would this decision have on employee morale? e. None of these choices is correct

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