=+Walter Brown is manager of the engineering development division of Gold Coast Products. Brown has just received a proposal signed by all 15 of his engineers to replace the computer workstations with networked personal computers (networked PCs). Brown is not enthusiastic about the proposal. Data on computer workstations and networked PCs are: Computer workstations Networked PCs Original cost $150 000 $67 500 Useful life 5 years 3 years Current age 2 years 0 years Remaining useful life 3 years 3 years Accumulated depreciation $60 000 Not acquired yet Current carrying amount $90 000 Not acquired yet Current disposal value (in cash) $47 500 Not acquired yet Terminal disposal value (in cash 3 years from now) $0 $0 Annual computer-related cash operating costs $20 000 $5 000 Annual revenues $500 000 $500 000 Annual non-computer-related operating costs $440 000 $440 000 Walter Brown’s annual bonus includes a component based on division operating profit. He has a promotion possibility next year that would make him a group vice-president of Gold Coast Products. Required 1 Compare the costs of computer workstations and networked PCs. Consider the cumulative results for the three years together, ignoring the time value of money and income taxes. 2 Why might Walter Brown be reluctant to purchase the networked PCs?