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purchased for $1,000,000 and with a 5 . year useful ife, is only 2 yoart old. It thas a terrinal dispostal yaluo of $0 and

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purchased for \$1,000,000 and with a 5 . year useful ife, is only 2 yoart old. It thas a terrinal dispostal yaluo of \$0 and is doprecialed on a thaight-ine tasis The equpenent has a current dreposal price of $550,000. However the emergence of a new molding technology has lod Tech cear to conaider either upgrading or replacinh the production tegupenent. The folowing tale presents dath for the fwo allematines Requirement 1, Should TechCear upgrade its probuction ine or replace it? Show your calculations Detemune the tolal relevant cosis ovor 3 yeare. (If an rout fiold is not uted in the fable, learee the input field emply, de not enker a zero Use parentheses or a minus sign for numbors (o be sutsasted.) TechGear Company produces and sels 6,000 modular compuler desks per year at a seling price of st00 each. its current producticn equipment, rased for $1,800,000 and wth a 5 year usoful 160 , is orly 2 years old it has a terminal disposel value of $0 and is deprecintod on a straight. Data table Requirements 1. vuld TochGear upgrade its production ine or replice it? Shew your calculations 2. Now suppose the one-time equpment cost to roplace the production equipment is somewhat regotiable. All other data are as gven prevously What is the macimum one-time equipment cost thafrochGear would be wilingt. Jay to replace rather than upgrade the old equipment? 3. Assume that the captal expenditures to replace and upgrade the production equiment are as given in the onginal exorcise, but that the production and sales quantity is not known. For what production and sales quantly would TochGear (a) upgrade the equipenent or (b) replace the equipment? 4. Assume that all data are as given in the ceginal exercise. Dan Doria is TechGoar's manager and his bonus is based on operating income. Bocause he is kely to relocate affer about a year, his current bonus is his primary concern. Which atornative would Doris choose? Explain. its current production equipment. s depreciated on a straight tine basis. ed TechGear to consider either purchased for $1,800,000 and with a 5-year useful life, is only 2 years old. It has a terminal disposal value of $0 and is depre The equipment has a current disposal price of $550,000. However. the emeraence of a new moldina technologv has led Tec Requirements 1. Should TechGear 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 TechGear 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 TechGear (a) upgrade the equipment or (b) replace the equipment? 4. Assume that all data are as given in the original exercise. Dan Doria is TechGear'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. purchased for \$1,000,000 and with a 5 . year useful ife, is only 2 yoart old. It thas a terrinal dispostal yaluo of \$0 and is doprecialed on a thaight-ine tasis The equpenent has a current dreposal price of $550,000. However the emergence of a new molding technology has lod Tech cear to conaider either upgrading or replacinh the production tegupenent. The folowing tale presents dath for the fwo allematines Requirement 1, Should TechCear upgrade its probuction ine or replace it? Show your calculations Detemune the tolal relevant cosis ovor 3 yeare. (If an rout fiold is not uted in the fable, learee the input field emply, de not enker a zero Use parentheses or a minus sign for numbors (o be sutsasted.) TechGear Company produces and sels 6,000 modular compuler desks per year at a seling price of st00 each. its current producticn equipment, rased for $1,800,000 and wth a 5 year usoful 160 , is orly 2 years old it has a terminal disposel value of $0 and is deprecintod on a straight. Data table Requirements 1. vuld TochGear upgrade its production ine or replice it? Shew your calculations 2. Now suppose the one-time equpment cost to roplace the production equipment is somewhat regotiable. All other data are as gven prevously What is the macimum one-time equipment cost thafrochGear would be wilingt. Jay to replace rather than upgrade the old equipment? 3. Assume that the captal expenditures to replace and upgrade the production equiment are as given in the onginal exorcise, but that the production and sales quantity is not known. For what production and sales quantly would TochGear (a) upgrade the equipenent or (b) replace the equipment? 4. Assume that all data are as given in the ceginal exercise. Dan Doria is TechGoar's manager and his bonus is based on operating income. Bocause he is kely to relocate affer about a year, his current bonus is his primary concern. Which atornative would Doris choose? Explain. its current production equipment. s depreciated on a straight tine basis. ed TechGear to consider either purchased for $1,800,000 and with a 5-year useful life, is only 2 years old. It has a terminal disposal value of $0 and is depre The equipment has a current disposal price of $550,000. However. the emeraence of a new moldina technologv has led Tec Requirements 1. Should TechGear 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 TechGear 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 TechGear (a) upgrade the equipment or (b) replace the equipment? 4. Assume that all data are as given in the original exercise. Dan Doria is TechGear'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

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