Tawstir Corporation has 300 obsolete personal computers that are carried in inventory at a total cost of $432,000. If these computers are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the computers can be sold in their present condition for $30,000.
What is the net advantage or disadvantage to the company from upgrading the computers rather than selling them in their present condition?
