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Mortimer Magoo, President of Pee Wee Pool Co. approached his CFO, Lak Luster with a new strategy to save money. Magoo believes that he can get the same job done, and done cheaper, if he purchases an Orangutan to perform the functions of someone in the billing department. While Lak is a bit taken aback, he ponders the thought and proceeds to undertake a thorough study. The cost of acquiring the Orangutan is $250,000. The annual cost to train, maintain, and house the Orangutan is $16,000. Also, since the economic life of the Orangutan is approximately 12 years, at which time, the Orangutan could be sold to a circus for $10,000; Pee Wee Pool could justifiably depreciate the Orangutan ratably over its useful life with the $10,000 residual, in mind. The gentlemen being considered for replacement, Botch Bumpstead is earning an annual salary of $54,000. Given a minimum required rate of return of 12%, applied to all investment opportunities, and a corporate tax rate of 21%, should Mortimer Magoo replace Botch with the Orangutan? Mortimer Magoo, President of Pee Wee Pool Co. approached his CFO, Lak Luster with a new strategy to save money. Magoo believes that he can get the same job done, and done cheaper, if he purchases an Orangutan to perform the functions of someone in the billing department. While Lak is a bit taken aback, he ponders the thought and proceeds to undertake a thorough study. The cost of acquiring the Orangutan is $250,000. The annual cost to train, maintain, and house the Orangutan is $16,000. Also, since the economic life of the Orangutan is approximately 12 years, at which time, the Orangutan could be sold to a circus for $10,000; Pee Wee Pool could justifiably depreciate the Orangutan ratably over its useful life with the $10,000 residual, in mind. The gentlemen being considered for replacement, Botch Bumpstead is earning an annual salary of $54,000. Given a minimum required rate of return of 12%, applied to all investment opportunities, and a corporate tax rate of 21%, should Mortimer Magoo replace Botch with the Orangutan