HW Score: 0%, 0 of 45 ptsa E11-33 (similar to) Oueson Help The Techsst Company produces and sells 700 modular compuer desks waue of $0 ands deprcad on a ght-ne ba The equpment han a oent d al price of s550 0 Hoer he egce of aew mding y hd Tech to ide her gradng acng he odutonq Te following table preents data for the teo atemallives r at a seling price of 5400 each cent peoduction eqment purchaned or$1,950 000 and with a eyear usefu e only teo yeurs ad has a temn m(C to ew the date for the twe ateatves All equpnent cocts will contue to be depreciated on a sraghtne bass For samplicty ignore inco laves and he te vaue of maney Read the eauements Reqirement 1 Should TechAst upgrade s producon ne or replace ? Show your caloatons Detemne the total ant costs over 3 yeas of a box is not used the labe ave the box emply 8 nt eer a zers Use parenheses or a min agn o bers to be sublacted Over 3 years Replace upgrade onerence Total relevant cos Choose from any t or enter any number in the input felds and then click Check Answer O parts - X Data Table i yo v Upgrade Replace e subtr One-time equipment costs $ 2,500,000 $ 4,200,000 Variable manufacturing cost per desk 165 $ 75 Remaining useful life of equipment (years) 3 3 Terminal disposal value of equipment O $ $ 0 Print Done - X Requirements 1. Should TechAssist upgrade its production line or replace it? Show your calculations. 2. Now suppose the one-time equipment cost to replace the production equipment is somewhat negotiable. All other data are as given previously. What is the maximum one-time equipment cost that TechAssist would be willing to pay to replace rather than upgrade the old equipment? 3. Assume that the capital expenditures to replace and upgrade the production equipment are as given in the original exercise, but that the production and sales quantity is not known. For what production and sales quantity would TechAssist () upgrade the equipment or (ii) replace the equipment? 4. Assume that all data are as given in the original exercise. Dan Doria is TechAssist's manager and his bonus is based on operating income. Because he is likely to relocate after about a year his current bonus is his primary concern. Which alternative would Doria choose? Explain. Done Print