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production costs associated with the old machine are estimated to be $8,500 per year for eight years. The annual variable production costs for the new
production costs associated with the old machine are estimated to be $8,500 per year for eight years. The annual variable production costs for the new machine are estimated to be $5,000 per year for eight years. Required: A. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labe/s and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter " 0 ". A colon (:) will automatically appear if required. B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine. C. What is the sunk cost in this situation? Labels and Amount Descriptions Labels April 29 Cash flows from investing activities Costs Revenues Amount Descriptions Gain on sale of investments Income (loss) Loss on sale of investments Proceeds from sale of old machine Purchase price Total costs Variable production costs (8 years) +
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