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i cant figure out cash operating cost?? The TechNet Company produces and sells 5,500 modular computer desks per year at a selling price of $550

image text in transcribedimage text in transcribed i cant figure out cash operating cost??

The TechNet Company produces and sells 5,500 modular computer desks per year at a selling price of $550 each. Its current production equipment, purchased for $1,950,000 and with a five-year useful life, is only two years old. It has a terminal disposal value of $0 and is depreciated on a straight-line basis. The equipment has a current disposal price of $550,000. However, the emergence of a gy has led iechle t consider either uprading or replacing the diment The folouing tablie presents data for the two alternatives: (Click to view the data for the two alternatives.) All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore income taxes and the time value of money Data Table Upgrade Replace 3,200,000 4,100,000 One-time equipment costs Variable manufacturing cost per desk Remaining useful life of equipment (years) Terminal disposal value of equipment 135 S 3 0 S

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