13) 3,000 in pro 592,000 in prover their lives og to decide better and requires life, and requircht-line to zero pot be replace . has a five-We depreciated.com is chosenste is 14.2 p 13) EDP is trying to decide between two different conveyor belt systems. System A costs $438,000, has a six-year life, and requires $83,000 in pretax annual operating costs. System B costs $369,000, has a five-year life, and requires $92,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 23 percent and the discount rate is 14.2 percent. Which system should the firm choose and why? A) B: The net present value is --S553,041. B) A: The net present value is --S398,516. C) B; The net present value is --$608222 D) B: The net present value is -S490,6%6. E) A; The net present value is --S547,836. 19) 14) Which one of the following should not be included in the analysis of a new product? A) Increase in accounts receivable needed to finance sales of the new product B) Increase in accounts payable for inventory purchases of the new product C) Money already spent for research and development of the new product D) Market value of a machine owned by the firm which will be used to produce the new product E) Reduction in sales for a current product once the new product is introduced 15) 15) High Breeze is considering expanding on some land that it currently owns. The initial cost of the land was $364,500 and it is currently valued at $357,900. The company has some unused equipment that it currently owns valued at $29,000 that could be used for this project if $8,200 is spent for equipment modifications. Other equipment costing $157,900 will also be required. What is the amount of the initial cash flow for this expansion project? A)-$530,600 B) -$158,720 C)-S559,600 D) -5553,000 E) -S585,600 16) 16) Which one of the following will increase a bid price? A) A reduction in the networking capital requirement B) An increase in the salvage value C) A decrease in the fixed costs D) A reduction in the firm's tax rate E) An increase in the required rate of return