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Machine Replacement Decision Creekside Products Inc. Is consldering replacing an old plece of machinery, which cost $3,302,000 and has $1,936,000 of accumulated depreclation to date,
Machine Replacement Decision Creekside Products Inc. Is consldering replacing an old plece of machinery, which cost $3,302,000 and has $1,936,000 of accumulated depreclation to date, with a new machine that costs $2,482,400. The old machine could be sold for $392,000. The annual variable production costs associated with the old machine are estimated to be900,900 for eight years. The annual variable production costs ror the new machine are estimated to be 612,600 for eight years. a. Determine the total and annualized differential income or loss anticipated from replacing the old machine Net differential Annual differential b. What is the sunk cost in this situation
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