Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $598,800 and has $347,200 of accumulated depreciation to date, with a new machine that has a purchase price of $484,300. The old machine could be sold for $63,400. The annual variable production costs associated with the old machine are estimated to be $158,300 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,400 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "O". If required, use a minus sign to indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace Old Differential Machine Machine (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine Costs: with Old Effects Purchase price Variable productions costs (8 years) Profit (Loss)