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13. You are deciding between the purchase of two computer systems that perform the same function. The computer will be replaced at the end of

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13. You are deciding between the purchase of two computer systems that perform the same function. The computer will be replaced at the end of its useful life. Computer 1 lasts three years and costs $40,000. After-tax maintenance expenses are expected to be $10,000, S7,000, and $5,000 in years 1,2, and 3, respectively. Computer 2 lasts four years, costs $30,000, and has after-tax maintenance expenses of $11,000 per year. Ignore depreciation and assume both computer systems will be worthless at the end of their useful lives. If your discount rate is 8%, which is the better buy? Show how you arrived at your decision. (13 points)

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