Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $400,000 and has $175,000 of accumulated depreciation to date with a new machine that has a purchase price of $550,000. The old machine could be sold for $250.000. The annual variable production costs associated with the old machine are estimated to be $ 72,500 per year for eight years. The annual variable production costs for the new machine ste estimated to be 524.000 per year for eight years. Question Content Area 2.1 Prepare a dated May 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "0". If required, use a minus sign to indicate a los Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine Costs: Purchase price Variable production costs (8 years) Profit (Loss) LILL Question Content Area a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Question Content Area b. What is the sunk cost in this situation? The sunk cost is $fill in the blank