Management of Plascencia Corporation is considering whether to purchase a new model 20 machine costing 5360.000 or a new model 220 machine costing 5340.000 to replace a machine that was purchased 7 years ago for $348,000. The old machine was used to make product 1431. suntil it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making products. Management also considered, but rejected the alternative of simply dropping product 1431. If that were done, instead of investing $340,000 in the new machine, the money could be invested in a project that would return a total of 5411,000 in making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was $12.000 $20.000 58.000 563.000