Machine Replacement Decision A company is considering replacing an old plece of machinery, which cost 5600,700 and has $348,400 of accumulated depreclatson to date, with a new machine that has a purchase price of $484,100. The old mechine could be sold for $54,200. The annual vaciable production costs assochated with the old machine are estimated to be $155,300 per year for 8 years. The annual varlable production costs for the new machine are estimated to be 5100,400 per year for 8 years 2.1. Prepare a differential analysis dated December 10 to detemine whether to continue with (Aiternotive 1 ) or replace (Alernative 2) the old machine. If an amount is zero, enter "o", If required, use a minus sign to indicate a loss. a.2 Determine whether to continue with (Aternative 1) or repiace (Aiternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is: 5