Darshan Engineering, LLC has decided they need to conduct an after-tax analysis for problem 5.13  and so the estimated annual receipts and expenses are shown below. The company MARR is 12%. Which system is preferred?

First cost Revenue Operating costs Service period Salvage value Manual Automatic $12,000 $15,000 $23,000 $38,500 $3,000 $1,500 8 years 4 years $2,500 $0