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The Dietrich Company produces and sols 5.200 modular computer desks per year at a selinganice of $625 each. Is current production equipment, purchased for $1.300.000 and with a fve-year stufe, is only two years old. has a terminal decosal value of 50 and is deprecated on a strage in base. The coucment has a current disposal price of $500.000. However, the emergence of a new moulding technology has led trinto consider the upgrading or replacing the production prent. The flowing table pretenta data for the teave cho con to view the data) Red Required Requirement 1. Shoe Dich upgrade its production in rece? Show your cat (Only come Over 3 years Replace Derence in favor of Replace Cash porting con Current disposal price Onesmo capital costs, written off periodically an depreciation Total relevant cost 1 Show Dirich grade in production in or replaci? Seow your own 2. Now on the crime super cont to replace the procediment omnego Alohe Gwie w gen previously What is the main trole sono control Cluicht bewing pay to replace the daten Wher than upgrade 3. Ameopend tres to replace and trade producent en is the original mercatul that the productos que real known. For what production and sales and would Durich (a) upgrade Qurant or () replace the equipment 4. Asume that all data are given in the righ Dan Doria a Dietrich unge die bonus is based on pering income. Becaly to lower about e current one is primary on which warrative would Dorinho? plan Data table Upgrade Replace One-timento 52.400,000 $ 3,300.000 Variable manufacturing cost per desk 140 8 Remaining a life often years 3 Terminal posal value of emert Nl equipment costs will continue to be deprecated on a straighane basis. For simplicity grore income taxes and the time value of money Print Done

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