Acompany is considering replacing an old piece of machinery, which cost $598,200 and has $347,400 of accumulated depreciation to date, with a new machine that has a purchase price of $483,800. the old machine could be sold for $61,500. the annual variable production costs associated with the old machine are estimated to be $156,700 per year for eight years. the annual variable production costs for the new machine are estimated to be $98,600 per year for eight years. a.1 prepare a differential analysis dated september 13, to determine whether to continue with (alternative 1) or replace (alternative 2) the old machine. if an amount is zero, enter "0". for those boxes in which you must enter subtracted or negative numbers use a minus sign. a.2 determine whether to continue with (alternative 1) or replace (alternative 2) the old machine. replace the old machine feedback compare the differential revenues and differential costs of continuing vs. replacing. which one has the greatest positive differential effect on income? b. what is the sunk cost in this situation?