Two baggage handling systems are being considered for a small airport. The first system has an initial cost of $800,000, operating costs of $50,000 per year, and no salvage value. The second system that is being considered has an initial cost of $1.2 million and operating costs of $25,000 per year. If the airport management considers 12% ROI a target, how long must the more expensive system be used in order for it to be the most economical? Is this a reasonable expectation? Solve this problem on an annual amount basis. What other factors should be considered?