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7. (15 points) ACME Inc invests S70,000 in an automated material handling system for its DC in Philadelphia. The annual operating costs are estimated to be $1,500 per year with increments of 5% every year. The automated material handling systems requires an upgrade every 5 years which costs $10,000 each time. The actual material handling system is manual and the current labor costs are estimated to be $7,000 per year with increments of $1000 per year. Using a MARR of 10% compounded annually, a planning horizon of 15 years and that no upgrade will be required in year 15, determine if the investment in the automated material handling is justified