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$99,300 per year for eight years. Differential Analysis Continue with Old Machine (Alt.1)...

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Accounting

$99,300 per year for eight years.
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 productions costs (8 years)
Profit (Loss)
vdots
a.2 Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine.
b. What is the sunk cost in this situation?
The sunk cost is $
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