4. Recently, the factory in Atlanta, U.S., needs to upgrade its' auto inspection system or buy a new one. The following shows the related information of these two alternatives: Upgrade Current Purchase Price, New Current book value Upgrade needed now Annual cash operating costs Current salvage value Salvage value in five years Machine New Machine $123,750 $194,580 36,850 70,250 69,300 44,000 8,800 52,800 68,500 Which is the most desirable? Assume no tax and the current required rate of return is 15%. Explain and show your computation. (5%)