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A company is considering replacing an old piece of machinery, which cost $600,400 and has...

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A company is considering replacing an old piece of machinery, which cost $600,400 and has $350,700 of accumulated depreciation to date, with a new machine that has a purchase price of $484,000. The old machine could be sold for $63,700. The annual variable production costs associated with the old machine are estimated to be $158,700 per year for 8 years. The annual variable production costs for the new machine are estimated to be $100,300 per year for 8 years. a.1 Prepare a differential andlysis dated December 10 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 loss. nifferential Analvsis a.2 Determine whether to continue with (Alternative 1) or replace (Altemative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is 5

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