# An airport needs a modern material handling system for facilitating access to and from a busy...

###### Question:

An airport needs a modern material handling system for facilitating access to and from a busy maintenance hanger. A second-hand system will cost $75,000. A new system with improved technology can decrease labor hours by 25% compared to the used system. The new system will cost$140,000 to purchase and install. Both systems have a useful life of five years. The market value of the used system is expected to be $20,000 in five years, and the market value of the new system is anticipated to be$60,000 in five years. Current maintenance activity will require the used system to be operated 8 hours per day for 20 days per month. If labor costs \$40 per hour and the MARR is 1% per month, which system should be recommended? Click the icon to view the interest and annuity table for discrete compounding when 1% per month. The PW of the difference between the old and new systems is Round to the nearest dollar.) Which system should be recommended? Choose the correct answer below. O New system O Old system

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