In planning a plant expansion. Med immune has an economic decision to make-upgrade the existing controlled-environment rooms or purchase new ones. The presently owned ones were purchased 4 years ago for $250,000. They have a current "quick sale" value of $15,000. But for an investment of $95,000 now. they would be adequate for another 4 years, after which they would be sold for $40,000. Alternatively, new controlled-environment rooms could be purchased at a cost of $265,000. They are expected to have a 10-year life with a $45,000 salvage value at that time. Determine whether the company should upgrade or replace with AW value. Use a MARR of 20% per year. Upgrade Rooms - AW =$ -34, 635.30 Replace Rooms - AW =$ -35, 840.55 Upgrade Rooms - AW =$ -35, 040.30 Replace Rooms - AW =$ -61, 474.40