AoL Co. is a company located in BC. During the summer, you started a part-time job at this company. The company develops online training platforms for corporate clients and provides content support on a subscription basis. The company is considering upgrading the computers used by its graphic design department. The five computers being replaced cost $12,000 two years ago and now have a net book value of $4,000 based on using straight-line depreciation, a three-year useful life, and $0 salvage value. Your analysis indicates that you can likely get about $500 per computer if you advertise them online. The new computers being considered will cost $15,000 in total and will also have a three-year useful life, with an estimated salvage value of $0. The new computers each include annual licences for graphic design software for which the company is currently paying a total of $500 per year, per computer. Required: a) You prepared an analysis of the financial effects of keeping the old computers versus buying the new computers that ignored the $4,000 net book value of the old computers. Your supervisor has politely told you that it was a mistake to exclude the $4,000 since it will have to be written off for financial reporting purposes if the company goes ahead and purchases the new computers. Your supervisor noted, You should have included a loss of $1,500 in your analysis: the $2,500 salvage value ($500 5) less the $4,000 net book value to be written off. Who is correct, and why? b) Regarding the decision on keeping the old computers versus buying the new computers, under the option to keep the existing computers, what are the opportunity costs, and why?