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Show Me How Calculator Replace Equipment book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for

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Show Me How Calculator Replace Equipment book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,500 and replace it with A machine with a a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would costs from $11,200 to $7,400. reduce annual direct labor machine (Alternative a. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old 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 (Alternative 1) Replace Old Machine (Aternative 2) Differential Effect on Proceeds from sale of old machine Costs: 50,500 50,500 Purchase price Direct labor (5 years) Income (Loss) 75,000 b. Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Continue with the old machine V Check My Work Previous Next All work saved

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