Dell is considering replacing one of its material handling systems. It has an annual O&M cost of \($48,000,\) a remaining operational life of 8 years, and an estimated salvage value of \($6,000\) at that time. A new system can be purchased for \($175,000.\) It will be worth \($50,000\) in 8 years, and it will have annual O&M costs of only \($17,000\) per year due to new technology. If the new system is purchased, the old system will be traded in for \($55,000,\) even though the old system can be sold for only \($45,000\) on the open market. Leasing a new system will cost \($31,000\) per year, payable at the beginning of the year, plus operating costs of \($15,000\) per year payable at year-end. If the new system is leased, the existing material handling system will be sold for its market value of \($45,000.\) Use an 8-year planning horizon, an annual worth analysis, and MARR of 15 percent to decide which material handling system to recommend: (1) keep existing, (2) trade in existing and purchase new, or (3) sell existing and lease. Use the cash flow approach (insider’s viewpoint approach).