The Tech Desk Company prudunes and sells 8,400 modular computer desky per year als selling price of 3750 each. His current production equipment, purchased for $1,850,000 and with a 5-year useful life, is only 2 years old. He has a terminal disposal value of SO and is deprecated in a straighil-ine bosis. The equipment has a cutent disposal price of SS00.000. However, the emergence of a new molding technology has led TechDesk to consider ether upgrading ar replacing the production coupment. The following table presents data for the two alternatives: Click to view the data for the two alternatives. Read the requiremen - X Data Table Cash Operating Costs Disposal Price + X Total Reevant Costs A B $1,440,000 - 5500.000 + X S5,768.000 1 Upgrade Replace 2 One-time equipment costs S 2,500,000 $ 3.900,00 The maximum one-time equipment cast that TechDesk wil he wiling to nay to place the old equipment rather than 3 Variable manufacturing cost per desk S 16615 75 upgrade it is S 4.828.000 1 Remaining useful life of equipment In years! S 3 Requirement 3. Assure that the capital expenditures to replace and upgrade the production equipment are given in the original exercise, but that the production and sales quantity is not kn 5 Terminal disposal value of equipment IS 08 Aquipment? Al cuipment costs will continue to be depreciated on a straight line basis. For First namine the equation you will use to calculate the quantity TechDesk would use to base a decisions. Then select the amounts that will be used in the equation. Round in the cast . simplicity, gnare Income taxes and the time value of money Upgrade Replace (Var mig cost par desky) + One-time equiponat (Vermic anat par desky) - Disposal price - One-time equio cost $185 y + $2,800,000 cor > $75 y $600,000 $3,800,000 Requirements the cor > Based on the ecuation above, Tech Desk wil upgrade when y is less than 0,889 and wil replace when yis greater than 8,000 Requirement 4. Assume that al data are a grcnn the onginal cxcrosc. Dan Dorials TechDesks manager, and his banus is based an operating income. Because he is ikely Bcgn by calculatng the ocrating income under cach alternative. (If an input field is not used in the babic, leave the input field empty, do not enter a zero. Round all amounts to the Over 1 Year Upgrade Replace HOOGTO HOOD 1. Should Tech Deck upgrade its production line or replace it? Show your calculations 2. Nor supose the one time equipment cost to replace the production equipment is somewhat negotiable. All other dels are as given previouby. What is the maximum one-time equipment custthal TechDesk would be wiling to pay to replace rather than upgrade the old excipient? 3. Aasure that the capital expenditures to replace and upgrade the production equipment are & given in the original exercise, but that the production and sales quantity is not known. For what production and sales quantity would TechDesk ( upgrade the equipment or throplace the Equioment? 4. Assume that al cata Ara es given in the original exercise. Den Borla ka TachDesks manager, and his bonus i Lased on operating income. Because he is likely to relocale aller aboul a year, his current bonus is his primary concem. Which alternative would Danachoase? Explain. Ravenues Cash operating sa Depreciation Loes on disposal of old aquipment Tola costs Print Done Operating income Help Me Solve This Text Pages Get More Help Clear All Check Answer The Tech Desk Company prudunes and sells 8,400 modular computer desky per year als selling price of 3750 each. His current production equipment, purchased for $1,850,000 and with a 5-year useful life, is only 2 years old. He has a terminal disposal value of SO and is deprecated in a straighil-ine bosis. The equipment has a cutent disposal price of SS00.000. However, the emergence of a new molding technology has led TechDesk to consider ether upgrading ar replacing the production coupment. The following table presents data for the two alternatives: Click to view the data for the two alternatives. Read the requiremen - X Data Table Cash Operating Costs Disposal Price + X Total Reevant Costs A B $1,440,000 - 5500.000 + X S5,768.000 1 Upgrade Replace 2 One-time equipment costs S 2,500,000 $ 3.900,00 The maximum one-time equipment cast that TechDesk wil he wiling to nay to place the old equipment rather than 3 Variable manufacturing cost per desk S 16615 75 upgrade it is S 4.828.000 1 Remaining useful life of equipment In years! S 3 Requirement 3. Assure that the capital expenditures to replace and upgrade the production equipment are given in the original exercise, but that the production and sales quantity is not kn 5 Terminal disposal value of equipment IS 08 Aquipment? Al cuipment costs will continue to be depreciated on a straight line basis. For First namine the equation you will use to calculate the quantity TechDesk would use to base a decisions. Then select the amounts that will be used in the equation. Round in the cast . simplicity, gnare Income taxes and the time value of money Upgrade Replace (Var mig cost par desky) + One-time equiponat (Vermic anat par desky) - Disposal price - One-time equio cost $185 y + $2,800,000 cor > $75 y $600,000 $3,800,000 Requirements the cor > Based on the ecuation above, Tech Desk wil upgrade when y is less than 0,889 and wil replace when yis greater than 8,000 Requirement 4. Assume that al data are a grcnn the onginal cxcrosc. Dan Dorials TechDesks manager, and his banus is based an operating income. Because he is ikely Bcgn by calculatng the ocrating income under cach alternative. (If an input field is not used in the babic, leave the input field empty, do not enter a zero. Round all amounts to the Over 1 Year Upgrade Replace HOOGTO HOOD 1. Should Tech Deck upgrade its production line or replace it? Show your calculations 2. Nor supose the one time equipment cost to replace the production equipment is somewhat negotiable. All other dels are as given previouby. What is the maximum one-time equipment custthal TechDesk would be wiling to pay to replace rather than upgrade the old excipient? 3. Aasure that the capital expenditures to replace and upgrade the production equipment are & given in the original exercise, but that the production and sales quantity is not known. For what production and sales quantity would TechDesk ( upgrade the equipment or throplace the Equioment? 4. Assume that al cata Ara es given in the original exercise. Den Borla ka TachDesks manager, and his bonus i Lased on operating income. Because he is likely to relocale aller aboul a year, his current bonus is his primary concem. Which alternative would Danachoase? Explain. Ravenues Cash operating sa Depreciation Loes on disposal of old aquipment Tola costs Print Done Operating income Help Me Solve This Text Pages Get More Help Clear All Check