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ght factor into the decision making EX 25-9 Machine replacement decision OBJ. 1 A company is considering replacing an old piece of machinery, W has

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ght factor into the decision making EX 25-9 Machine replacement decision OBJ. 1 A company is considering replacing an old piece of machinery, W has $350,000 of accumulated depreciation to date, with a new m chase price of $545,000. The old machine could be sold for $231,0 production costs associated with the old machine are estimated t for eight years. The annual variable production costs for the new to be $19,000 per year for eight years. which cost $600,000 and machine that has a pur- be $61,000 per year machine are estimated $61,000 per y a. Prepare a differential analys is dated September 13 to determine whether to continue with (Alternative 1) or replace (A b. What is the sunk cost in this situation? lternative 2) the old machine

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