Image you are the product manager for a main-line business application. Because of an inadequate software design, defect repair and feature enhancements are taking longer than anticipated. The programmers are calling for a complete rewrite. After extensive technical analysis, you identify two technically viable options:

1. Dont rewrite. Continue to pay the ongoing maintenance costs which are expected to be $82,000 a year.
2. Rewrite the application. A total rewrite is expected to take 1 year and cost $145,000. During the rewrite the monthly maintenance costs will stay the same: $82,000 a year. After the rewrite (years 2-5), maintenance costs are expected to drop to $41,000 a year.

What does the cash flow diagram look like for option 2? $82,000 $82,000 $82,000 $82,000 $82,000 $41,000 $41,000 $41,000 $41,000 $82,000+ $145,000 (a) (b) $82,000+ $145,000 M $82,000 1 $41,000 $41,000 $41,000 $41,000 $41,000 $41,000 $41,000 $41,000 $145,000 (d)