Instructions A machine with a book value of $124,560 has an estimated six-year life. A proposal is offered to sell the old machine for $83,030 and replace it with a new machine al cost of $162,900. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $56,930 to $41,400. Required: 1. Prepare a differential analysis dated October 3 on whether to continue with the old machine (Alternativo 1) or replace the old machine (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A con () will automatically appear if required. 2. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternativo 2)? Instructions and Amount DOCCIDOS Differential Analy Instructions Labels and Amount Descriptions AD is of CO ew m Labels Costs Revenues the o Amount Descriptions exact Direct labor (6 years) Income (loss) sign Proceeds from sale of old machine be the Purchase price Total costs Differential Analysis 1. Prepare a different analysis dated October 3 on whether to continue with the old machine (Alternativo 1) or replace the old machine (Alternative 2). Hefer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. Differential Analysis Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2) October 3 Continue with Replace Old Differential Effect on Income Old Machine Machine (Alternative 1) (Alternative 2) (Alternative 2) 3 Label 4 5 Label Differential Analysis 1. Final Question pl VSE no 2. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? The company is indifferent since the result is the same regardless of which alternative is chosen. Replace the old machine. rer 1 Continue with the old machine. 2 hat