Machine Replacement Decision Creekside Products Inc. is considering replacing an old piece of machinery, which cost $3,161,000 and has $1,854,000 of accumulated depreciation to date, with a new machine that costs $2,376,800. The old machine could be sold for $375,200. The annual variable production costs associated with the old machine are estimated to be $836,500 for eight years. The annual variable production costs for the new machine are estimated to be $560,500 for eight years. a. Determine the total and annualized differential income or loss anticipated from replacing the old machine. Net differential $fill in the blank 2 Annual differential $fill in the blank 4 b. What is the sunk cost in this situation? $fill in the blank 5