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Obj. 1 Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the

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Obj. 1 Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. INSTRUCTIONS 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential profit that would result over the six-year period if the new machine is acquired. 2. = List other factors that should be considered before a final decision is reached. 1. Differential Analysis Continue with Old (Alt. 1) or Replace (Alt. 2) Old Machine April 30 \begin{tabular}{lcc} Continue with & Roplace & Differential \\ Old Machine & Old Machine & Effects \\ (Alernative 1) & (Alternative 2) & (Alternative 2) \\ \hline \end{tabular} Revenues: Proceeds from sale of old machine Costs: Purchase price Annual manufacturing costs (6 yrs.) Income (loss) The proposal to replace the machine should be 2. [Key essay answer hero]

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