Franklin oper- County Hospital, a nonprofit hospital, bought and installed a new computer system last year for $150,000. The system is designed to relay information between labs and medical units. Charlene Walker, the hospital's new computer specialist, had a meeting with Lou Campbell, vice president of finance. She said: "Lou, today I read in a journal that a new computer system has just been in- troduced. It costs $60,000, but I believe that by replacing our old system, we could reduce c ating and maintenance costs that are now being incurred. The following are Walker's estimates: Purchase and installment price Useful life when purchased Computer operating costs per year Computer maintenance costs per year Depreciation expenses per year Cost of capital Present System $150,000 6 years $45,000 $24,000 $25,000 10% New System $60,000 5 years $25,000 $21,000 $12,000 10% a. Based on an analysis, what advice should Walker give Campbell? b. At what price for the new computer system would Campbell be indifferent on this decision? C. Is this a typical make-or-buy decision? Why or why not?