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Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $601,600 and has $351,300 of accumulate be sold for $64,400. The annual variable production costs associated with the old machine are estimated to be $158, be $101,400 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1 ) or replace loss, Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) 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 cont is 5 Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $601,600 and has $351,300 of accumulate be sold for $64,400. The annual variable production costs associated with the old machine are estimated to be $158, be $101,400 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1 ) or replace loss, Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) 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 cont is 5

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