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Avroland is an amusement park in Califomia. It currently uses a computer system to perform general sccounting functions, including tracking ticket sales and payroll as well as employee and maintenance scheduling functions. The original system cost $300,000 when purchases two years ago. It has been depreciated for tax purposes using straight-line depreciation with an expected useful life of four more years and a zero salvage value. However, due to recent expansion. the computer system is no longer enough. Upgrading the system to increase the storage capacity and processing speed to accommodate the extra data processing demands cost $65,000, and the upgrade system becomes obsolete in four years. These system additions also would be depreciated using straight-line depreciation and would have a zero salvage value. The company's accountant estimates that the firm will increase operating spending by $28.000 a year after taxes for data processing. payroll (including Avroland personnel), and annual updates of software for the upgraded system. Alternately, the firm could outsource payroll to a local payroll processing firm at the cost of $40,000 a year after taxes. This would free up enough capacity in the computer to avoid upgrading the machine. Assume a real cost of capital of 4 pereent and a tax rate of 40 percent. What should Avroland do? Avroland is an amusement park in Califomia. It currently uses a computer system to perform general sccounting functions, including tracking ticket sales and payroll as well as employee and maintenance scheduling functions. The original system cost $300,000 when purchases two years ago. It has been depreciated for tax purposes using straight-line depreciation with an expected useful life of four more years and a zero salvage value. However, due to recent expansion. the computer system is no longer enough. Upgrading the system to increase the storage capacity and processing speed to accommodate the extra data processing demands cost $65,000, and the upgrade system becomes obsolete in four years. These system additions also would be depreciated using straight-line depreciation and would have a zero salvage value. The company's accountant estimates that the firm will increase operating spending by $28.000 a year after taxes for data processing. payroll (including Avroland personnel), and annual updates of software for the upgraded system. Alternately, the firm could outsource payroll to a local payroll processing firm at the cost of $40,000 a year after taxes. This would free up enough capacity in the computer to avoid upgrading the machine. Assume a real cost of capital of 4 pereent and a tax rate of 40 percent. What should Avroland do