The TechGuide Company produces and sells 5,800 modular computer desks per year at a selling price of $700 each. Its current production equipment, purchased for $1,650,000 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 $700,000. However, the emergence of a new molding technology has led TechGuide to consider either upgrading or replacing the production equipment. The following table presents data for the two alternatives: (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. Read the requirements Requirement 1. Should TechGuide upgrade its production line or replace it? Show your calculations. Determine the total relevant costs over 3 years. (If an input field is not used in the table, leave the input field empty, do not enter a zero. Use parentheses or a minus sign for numbers to be subtracted.) Difference - X Data Table Cash operating costs Current disposal price One-time capital costs Over 3 years Upgrade Replace 1650000 -700000 3300000 4600000 700000 -1300000 B Total relevant costs Upgrade Replace $ 3,300,000 $ 4,600,000 145 $ 100 $ 2 One-time equipment costs 3 Variable manufacturing cost per desk 4 Remaining useful life of equipment (in years) 5 Terminal disposal value of equipment 3 $ Print Done