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1.) A packaging company is considering purchasing a new material handling system to replace the existing one. The current material handling system was purchased seven years ago for $135000. At the time, the company estimated the system to last 12 years and had an end-of-life value of $3000. The system currently in use has a market value of $40000, and if continued use of the system will cost $24000 a year to operate, the system is expected to be sold at the expected price. when the expiration date The new material handling system under consideration is priced at $85000, with the new system operating costs $17000, a seven-year lifespan and a $10000 end-of-life value. Let the depreciation of the existing system be a 10-year straight-line calculation with an estimated salvage value. The new system's depreciation is a 5-year straight-line calculation with estimated salvage value. The tax rate is 50%. The minimum attractive rate of return on investments before tax and after tax consideration is 20% and 10% respectively. Analyze and decide whether to continue using an existing material handling system or to purchase a new material handling system to replace it before and after tax considerations