Machine Replacement Decision Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Revenues: Proceeds from sale of old machine Costs: Purchase price Variable productions costs ( 8 years) Income (Loss) Feedback v Check My Work Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Feedback Check My Work Incorrect b. What is the sunk cost in this situation? The sunk cost is