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Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a
Tawstir Corporation has 500 obsolete personal computers that are carried in inventory at a total cost of $720,000. If these computers are upgraded at a total cost of $190,000, they can be sold for a total of $250,000. As an alternative, the computers can be sold in their present condition for $50,000.
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition? A) $750,000 disadvantage B) $10,000 advantage C) $60,000 advantage D) $200,000 advantage |
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