QUESTION Exide Technologies think the operation system for the machine tools is too old and to slow, but it can still be used for 5 years with an update. Exide Technologies is considering build a new operation system to replace the old one. A summary of the financial formation of build a new one and use the old one Challenger Build a New Operation System: Cash Flow Investment 0.000 Salvage $70,500 TOY Salvage decrease OAM $10,000 OAM Cost increase Investment cost 300,000 Estimated use of 5 years Salvage value of 570.500 at EOY 1. decreasing at a rate of cach year Operating and maintenance costs are expected to be $10.000 EOY 1 increasing at a rate of 12 each year Defender: Use the Old Operation System with an update Cash Flow Time Investment(update fee) $55,000 Salvage BOY Salvage decrease per year OAM $9.000 EOV1 OSM Cost increase (per year) Estimated useful We of 5 years Salvage value of $55.000 ather the first year from today dengan of 6% each year Current market value of $45.000 Operating and maintenance costs for the next years expected to be 59.000 in the first year increasing at a rate of 15 each year With a MARR of 12%, calculate the following a Calculate the economic service life for each wave 14.4 points What are your conclusions? points