Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $598,800 and has $349,600 of accum price of $484,200. The old machine could be sold for $62,100. The annual variable production costs associated n years. The annual variable production costs for the new machine are estimated to be $101,100 per year for 8 yea a.1 Prepare a differential analysis dated December 10 to determine whether to continue with (Alternative 1 ) or n " 0 ". If required, use a minus sign to indicate a loss. a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. cost $598,800 and has $349,600 of accumulated depreciation to date, with a new machine that has a purchase nnual variable production costs associated with the old machine are estimated to be $157,400 per vear for 8 estimated to be $101,100 per year for 8 years. whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter Old Machine (Alternative 2 ) the old machine. years. The annual variable production costs for the new machine are estimated to be $101,100 per year for 8 years. a.1 Prepare a differential analysis dated December 10 to determine whether to continue with (Alternative 1 ) or replace (Alternats " 0 ". If required, use a minus sign to indicate a loss. Differential Analysis Continue with (Alt. 1) or Replace (Alt. 2) Old Machine a.2 Determine whether to continue with (Alternative 1) of replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is $