Replace Equipment A machine with a book value of $25,000 has an estimated remaining life of 5 years. A proposal is offered to sell the old machine for $18,800 and replace it with a new machine at a cost of $40,000. The new machine has a 5 -year fife with no residual value. The new machine would reduce annual direct labor costs from $17,500 to $9,000. a. Prepare a differential analysis dated June 2 on whether to continue with the old machine (Alternative 1 ) or replace the old machine (Aiternative 2 ), If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Replace Equipment A machine with a book value of $25,000 has an estimated remaining life of 5 years. A proposal is offered to sell the old machine for $18,800 and replace it with a new machine at a cost of $40,000. The new machine has a 5 -year fife with no residual value. The new machine would reduce annual direct labor costs from $17,500 to $9,000. a. Prepare a differential analysis dated June 2 on whether to continue with the old machine (Alternative 1 ) or replace the old machine (Aiternative 2 ), If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)