A company is considering two AC systems. System 1 will have an initial cost of $380,000, an annual operating cost of $160,000, and a life of 3 years. System 2 will have an initial cost of $680,000, an operating cost of $140,000 per year, and a 6 -year life. Assume 15% of the initial cost as salvage values for both systems. At an interest rate of 11% per year, which system should be selected based on a present worth analysis