Tesco company is trying to decide between two different computer-based cost-cutting proposals. System I costs $600,000 to buy and install, has a 6-year life, and will save $220,000 per year (before tax) by reducing labor and material costs. System II costs $700,000 to buy and install, has an 8-year life, and will save $100,000 each year (before tax) by reducing labor and material costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 35 percent and the discount rate is 15 percent. Using the Tax Shield Approach which system should the firm choose and why?