Sugar Sweet {33} Company produoes and sells 1,000 specialty Treats per year at a selling price of $050 each. Its current production equipment, purchased for $1 $50,000 and with a ve-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 $500,000. However, the emergence of a new technology has led SE to consider either upgrading or replacing the production equipment. The following table presents data for the ve alternatives: A B C 1 Choice Upgrade Replace 2 Duevtinte equipment costs $3,000,000 $4,300,000 3 Variable manufacturing cost per Treat $150 $T0 4 Remaining useful life of equipment {years} 3 3 5 Terminal disposal value of equipment 0 0