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:

Old Machine

Cost of machine, 10-year life$109,300

Annual depreciation (straight-line)10,930

Annual manufacturing costs, excluding depreciation38,000

Annual nonmanufacturing operating expenses12,700

Annual revenue94,700

Current estimated selling price of the machine36,000

New Machine

Cost of machine, six-year life$136,800

Annual depreciation (straight-line)22,800

Estimated annual manufacturing costs, exclusive of depreciation17,800

Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.

a differential analysis as of February 28, 2014, comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the totaldifferential incomethat would result over the six-year period if the new machine is acquired.