OLD MACHINE Original Cost = $200,000 Accumulated Depreciation = $40,000 Estimated useful life = 10 years remaining Annual variable costs to operate = $240,000 NEW MACHINE Original Cost = $160,000 Accumulated Depreciation = N/A Estimated useful life = 10 years Annual variable costs to operate = $200,000 1. Compute for both old and new machine the following: Variable Costs to Operate New Machine Cost Total Costs 2. Should the company buy a new machine or retain the old machine. Explain