Apricot Computers is considering replacing its material handling system and either purchasing or leasing a new system. The old system has an annual operating and maintenance cost of $31,000, a remaining life of 8 years, and an estimated salvage value of $5,800 at that time.

A new system can be purchased for $237,000; it will be worth $26,000 in 8 years; and it will have annual operating and maintenance costs of $19,000/year . If the new system is purchased, the old system can be traded in for $21,000.

Leasing a new system will cost $22,000/year , payable at the beginning of the year, plus operating costs of $8,400/year , payable at the end of the year. If the new system is leased, the old system will be sold for $9,400.

MARR is 14%. Compare the annual worths of keeping the old system, buying a new system, and leasing a new system based upon a planning horizon of 8 years.

What is the EUAC of the best option using the cash flow approach?