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plz help A company is considering replacing an old piece of machinery, which cost $601,600 and has $350,700 of accumulated depreciation to date, with a
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A company is considering replacing an old piece of machinery, which cost $601,600 and has $350,700 of accumulated depreciation to date, with a new machine that has a purchase price of $484,000. The old machine could be sold for 561,300 . The annual variable production costs associated with the old machine are estimated to be $155,600 per year for 8 years. The annual variable production costs for the new machine are estimated to be $99,700 per year for 8 years. a.1 Prepare a differential anaiysis dated December 10 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. a.2 Determine whether to continue with (Aiternative 1) or replace (Alternative 2) the old machine. a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is 5 Step by Step Solution
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