Problem 3 Avro land is an amusement park in California. It uses a computer system to perform general accounting functions, including tracking ticket sales and payroll and employee and maintenance scheduling functions. The original system cost $300,000 when purchased 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 would also be depreciated using straight-line depreciation and value. However, the computer system is no longer enough due to recent expansion to recent expansion, the computer system is no longer enough. Upgrading the system to increase the storage capacity and processing speed tolaccommodate 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 Alternatively, the fim could outsource payroll to a local payroll processing firm at 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 Avro land personnel), and annual, the computer system is no longer enough due to recent expansion, the computer system is no longer enough due to recent expansion updates of the software for the upgraded system. Alternatively, 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 an actual cost of capital of 4 percent and a tax rate of 40 percent. What should Avro land do