The TechAssist Company produces and sells 7,000 modular computer desks per year at a selling price of $400 each. Its current production equipment, purchased for $1,950,000 and with a five-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 $550,000. However, the emergence of a new molding technology has led TechAssist to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: 2 (Click to view the data for the two alternatives.) All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore income taxes and the time value of money. A Data Table Read the requirements. Requirement 1. Should TechAssist upgrade its production line or replace it? Show your calculations. Determine the total relevant costs over 3 years. (If a box is not used in the table, leave the box empty, do not enter a zero. Use parentheses or Over 3 years Upgrade Replace Upgrade Replace $ 3,300,000 $ 4,500,000 $ 145 $ 95 3 $ 0$ One-time equipment costs Variable manufacturing cost per desk Remaining useful life of equipment (years) Terminal disposal value of equipment Difference Cash operating costs Current disposal price (550000) 4500000 One-time capital costs 3300000 Print Done Total relevant costs Choose from any list or enter any number in the input fields and then click Check