Problem 15 Marita Lo desires to purchase a new front office computer system for her Lo Motel (LOMO) After considerable discussion with purveyors, she has narrowed her choices to systems sold by ABC Company and XYZ Computers. The system proposed by each company is expected to have a useful life of seven years. She believes the alternative systems are equivalent for providing services required by the LOMO; therefore, her focus is cost. The associated costs of each system are as follows: XYZ ABC Co. Computers Initial cost $25,000 $30,000 Annual costs: Labor 25,000 25,000 Utilities 1,000 800 Supplies 2,000 2,000 Maintenance 3,000 2,500 Salvage value (in 7 years) 5,000 8,000 Required: 1. Which costs are irrelevant? 2. Which system should Marita purchase? (Ignore the time value of money.) Support your decision with numbers