Graded Activity #3_(20%) Problem Set Don Williams is General manager of Carib Systems who received a proposal to replace the Version 1 with Version 2 Point of Sales (POS) equipment at the company. Williams collects data about the proposal on Version 1 and Version 2 as follows: Version 1 POS $425,000 5 years 2 years 3 years $195,000 Original cost Useful life Current age Remaining useful life Accumulated depreciation Current book value Current disposal value (in cash) Final disposal value (in cash 3 years from now) Annual POS cash operating costs Annual revenues Annual non POS related operating costs Version 2 POS $170,000 3 years 0 years 3 years Not purchased yet Not purchased yet Not purchased yet $O $230,000 $120,000 $0 $60,000 $20,000 $1,250,000 $1,250,000 $920,000 $920,000 Required: As the Management Accountant: 1. Compare the costs of Version 1 POS and Version 2 POS. Consider the cumulative results for the three years together, ignoring the time value of money and income taxes. (15 Marks) 2. Advise Mr. Williams on the factors that determine whether a revenue or cost item is relevant for management at Carib Systems and indicate whether he should accept the proposal