$99,300 per year for eight years. Differential Analysis Continue with Old Machine (Alt.1)...
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$ per year for eight years. Differential Analysis Continue with Old Machine Alt or Replace Old Machine Alt May Continue Replace with Old Old Differential Machine Machine Effects Alternative Alternative Alternative Revenues: Proceeds from sale of old machine Costs: Purchase price Variable productions costs years Profit Loss vdots a Determine whether to continue with Alternative or replace Alternative the old machine. b What is the sunk cost in this situation? The sunk cost is $ 
$ per year for eight years.
Differential Analysis
Continue with Old Machine Alt or Replace Old Machine Alt
May
Continue Replace
with Old Old Differential
Machine Machine Effects
Alternative Alternative Alternative
Revenues:
Proceeds from sale of old machine
Costs:
Purchase price
Variable productions costs years
Profit Loss
vdots
a Determine whether to continue with Alternative or replace Alternative the old machine.
b What is the sunk cost in this situation?
The sunk cost is $
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