Transcribed image text: Instructions A company is considering replacing an old piece of machinery, which cost $605,400 and has $387,000 of accumulated depreciation to date, with a new machine that has a purchase price of $578,660. The old machine could be sold for $250,300. The annual variable production costs associated with the old machine are estimated to be $61.800 per year for eight years. The annual variable production costs for the new machine are estimated to be $17,950 per year for eight years Required: Prepare a differential analysis duted September 13 to determine whether to continue with (Atornatve 1) or replace (Alternative, 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those bores in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an annount is zero, enter For A colon () will automatically appear if required b. Determine whether the company should continue with (Alovnali 1 or replace (Ahormativo 2) the old machine, c. What is the sunk cost in the station? Labels and Amount Descriptions Labels Cash flows from investing activities Costs 1 Revenues Amount Descriptions Gain on sale of Investments Income (los) Loss on sale of investments Proceeds from sale of old machine Purchase price Variable production costs (8 years) a. Prepare a differential analysis dated September 13 to determine whether to continue wi (Alematve 1) or replace tomative 2) the old machine. Refer to the Asts of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus signere a no amount or an amount is zero, entero"A colon () will automatically appear it required Differential Analysis Continue with (Alternative 1) or Replace Alternative 2 Old Machine September 13 Replace Old Old Machine Machine Alternative 1 Alternative Continue with Differential Effect en income Alternative) Label