1 A 2 One-time equipment costs B Upgrade Replace $ 2,400,000 $ 4,200,000| 3 Variable manufacturing cost per desk $ 140 $ 75 4 Remaining useful life of equipment (in years) 3 3 5 Terminal disposal value of equipment $ 0 $ 0 All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore income taxes and the time value of money. 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.) Over 3 years Total relevant costs Upgrade Replace Difference
1 A 2 One-time equipment costs B Upgrade Replace $ 2,400,000 $ 4,200,000| 3 Variable manufacturing cost per desk $ 140 $ 75 4 Remaining useful life of equipment (in years) 3 3 5 Terminal disposal value of equipment $ 0 $ 0 All equipment costs will continue to be depreciated on a straight-line basis. For simplicity, ignore income taxes and the time value of money. 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.) Over 3 years Total relevant costs Upgrade Replace Difference
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1
A
2 One-time equipment costs
B
Upgrade
Replace
$ 2,400,000 $ 4,200,000|
3 Variable manufacturing cost per desk
$
140 $
75
4 Remaining useful life of equipment (in years)
3
3
5 Terminal disposal value of equipment
$
0 $
0
All equipment costs will continue to be depreciated on a straight-line basis.
For simplicity, ignore income taxes and the time value of money.
Transcribed Image Text: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.)
Over 3 years
Total relevant costs
Upgrade
Replace
Difference
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