The tempo golf country club in London, Ontario, is evaluating two different irrigation system options. An underground automatic irrigation system will cost 9.2 million to install and 80,000 pre tax annually to operate. It will not have to be replaced for 20 years. and aboveground system will cost 6.8 million to install, but 190,000 per year to operate. The above ground equipement has an effective operating life of 9 years. The country club leases its land from the city and both systems are considered leasehold improvements; as a result, straight-line capital cost allowance is used throughout, and neither system has any salvage value. which method should we select if we use a 13 percent discount rate? the tax rate is 39 percent.