7) ubuku Company is reviewing ways of cutting the cost of stocking raw materials. Two new stockless systems are being considered, to lower the company's holding and handling costs. The relevant financial data for each system as follows (dollar values are in millions): Current Price Stockless Supply System Just-in-Time System $2.5 S1.4 55 $3 S02 Start-up cost Annual Stock holding cost Annual Operating cost System Life $1.5 $1.2 8 years vers Ves The system life of eight years represents the period that the contract with the medical suppliers is in force. If the hospital's MARR is 10%, which system is more economical? Answer: Stockless Supply System