The facilities of an existing chemical company must be increased if the company is to continue in operation. There are two alternatives where one of the alternatives is to expand the present plant. If this is done, the expansion would cost $185,000. It was estimated that the labor cost would be $ 95,000 per year while costs for overhead, depreciation, taxes and insurance would be $70,000 per year. A second alternative requires construction and operation of new facilities at a location about 80 miles from the present plant. The new facilities would cost $250,000. Overhead costs would be $80,000 per year and annual insurance and taxes would amount to 2 percent of the initial investment. Labor costs would be $60,000 per year. All other costs except depreciation would be the same for each location. If the minimum return on any acceptable investment is 12 percent, determine the minimum service life allowable for the facilities at the distant location for this alternative to meet the required incremental return. The salvage value would be assumed to be zero and straight-line depreciation accounting may be used.