Marine Industrial Coatings, Inc. is considering replacing its existing computer system with a new computer system. The new system can offer considerable savings in computer processing and inventory management costs. Information about the existing system and the new system follow: Existing Computer New Computer Original cost $10,000 $15,000 $2,000 Annual operating cost $3,500 Current salvage value $4,000 of the existing system Remaining life in 5 5 years years Salvage value in 5 $0 years 5 years $0 Should Marine Industrial Coatings replace the existing computer system with the new system? What are the cash flow savings or additional cost over the 5 years? Ignore income taxes. Yes replace, net savings of $15,000. No do not replace, additional costs of $5,000. No do not replace, additional costs of $3,500. Yes replace, net savings of $5,000