Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $601,200 and has $351,000 of accumulated depreciation to date, with a new machine that has a purchase price of $483,300. The old machine could be sold for $62,300. The annual varlabie production costs associated with the old machine are estimated to be $157,900 per year for eight years, The annual variable production costs for the new machine are estimated to be $101,500 per year for eight years. a. Prepare a differential analysis dated Apni 29 to determine whether to continue with (Alternative 1) or replace (Atternative 2 ) the old machine. if an amount is zero, enter " 0 ". For those boxes in which you must enter subtracted or negative numbers use a minus sign. income of the revenues, costs, and hoome (poss) by sibtacting alternative 1 from altemative 2 . Determine whether to continue with (Alternative 1) or replace (Atternative 2) the old machine. b. What is the sunk cost in this situation? ine sunk cost is 1 Fundos: rchesu, won Partally correct