Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $602,800 and has $351,400 of accumulated depreciation to date, with a new machine that has a purchase price of $487,000. The old machine could be sold for $61,400. The annual variable production costs associated with the old machine are estimated to be $156,400 per year for 8 years. The annual variable production costs for the new machine are estimated to be $98,900 per year for 8 years. Question Content Area a.1 Prepare a differential analysis 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
Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $602,800 and has $351,400 of
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