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A contractor purchases a collating machine that can collate 1,000 documents a minute. The next year, the contractor spends $8,000 to have the machine upgraded.

A contractor purchases a collating machine that can collate 1,000 documents a minute. The next year, the contractor spends $8,000 to have the machine upgraded. After the upgrade, the machine can collate 1,400 documents a minute. According to Cost Accounting Standard (CAS) 404, what is this upgrade called? 

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