tachine Replacement Decision A company is considering replacing an old piece of machinery, which cost $602,100 and has $347,500 of accumulated depreclation to date, with a new machine that has a purchase price of $485,600. The old machine could be sold for $64,900. The annual variable production costs associated with the old machine are estimated to be: $157,900 per year for eight years. The annual variable production costs for the new machine are estimated to be $101,600 per year for elght years. a.1 Prepare a differential analysis doted September 13, to determine whether to continue with (Alternative 1) or replace (Alternative 2) the oid machine. If an amount is zero, enter "0", For those boxes in which you must enter subtracted or negative numbers use a minus sign. a.2 Determice whether to continue with (Altemative 1) or replace (Alternative 2) the old machine. b. Whot is the sunk cost in this situation? The sunk cost is the 4