College Service Company is considering the purchase of new computer system to replace the one in operation. Data on the new computer system are as follows: Cost $12,000 Salvage Value at the End of 5 years $ 1,000 Useful Life 5 years Annual Operating Costs $4,000 If College Service keeps and uses the existing computer system, it would need to purchase additional hardware, a year from now, costing $2,000. After the use of the system for 5 years, its salvage value would be $300. Additional information on the existing system is as follows: Addition Year of Use 5 Annual Operating Costs $9,000 Remaining Book Value $12,000 Current Salvage Value $0 The company uses the straight-line method of depreciation. Which computer system is the better choice? Show your calculations in good format and indicate the reasoning on which the decision is based.