An IT department needs to upgrade its hardware to run the new version of an established operating system. The cost of this required upgrade is $2 million. As an alternative, the IT director has suggested that the company should change to a completely different operating system.
Although this will cost $6 million, the change will bring many other benefits, including cheaper maintenance costs and increased security.
What is the avoided cost in his proposal?
A. $2 million.
B. $4 million
C. $6 million.
D. $8 million
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