Armstrong Company manufactures three models of paper shredders, including the waste container, which serves as the base. Whereas the shredder heads are different for all three models, the waste container is the same. The estimated numbers of waste containers that Armstrong will need during the next five years are as follows: Year Number of Containers 1 50,000 2 50,000 3 52,000 4 55,000 5 55,000 The equipment used to manufacture the waste container must be replaced because it is broken and cannot be repaired. The new equipment has a purchase price of $ 945,000 and is expected to have a salvage value of $ 12,000 at the end of its economic life in 5 years. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in direct materials. The old equipment is fully depreciated and is broken and cannot be repaired. The new equipment has a purchase price of $ 945,000 and is expected to have a salvage value of $ 12,000 at the end of its economic life in 5 years. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in direct materials. The old equipment is fully depreciated and is not included in the fixed overhead. The old equip-ment can be sold for a salvage amount of $ 1,500. Armstrong has no alternative use for the manufac-turing space at this time. Rather than replace the equipment, one of Armstrong