Replace Equipment A machine with a book value of $249,700 has an estimated six-year life. A proposal is offered to sell the old machine for $217,700 and replace it with a new machine at a cost of $281,500. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,000 to $39,200. a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate subtracted or negative numbers or a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (AIt. 2) Continue with Old Machine (Altermative Replace Old Machine (Altermative Differential Effect on Income Alternative 1) 2) 2) Revenues: Proceeds from sale of old machine cind 217.200 217,700 217,700 Costs: 281,500 -281,500 Purchase price -249,700 Direct labor (6 years) -249,700 Income (Loss) lternative 1) or replace the old machine (Alternative 2) b. Should the company continue with the old machine Continue with the old machine