Need Guidance on how to use the formula and solving the problem.

Keep or Replace Machine:

Skiles Coporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine.

Old Machine:

Original cost $439,300

Current accumulated depreciation 330,800

Estimated annual variable manufacturing costs for machine 73,900

Estimated selling price of machine 158,400

Estimated remaining useful life (in years) 6

New Machine:

Purchase cost $790,500

Estimated annual variable manufacturing costs for machine $47,000

Estimated residual value 0

Estimated useful life (in years) 6

Fill in the differential analysis.

Replace or Keep Decision

Differential Analysis Report

Cost of replacing old machine:

Annual differential decrease in cost $

x number of years is- 6

Total differential decrease in cost $

Proceeds from sale of present machine $15,8400 $________

Cost of new machine $790,500

Net differential (increase)/decrease in cost, six year total $________