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4 10 points eBook Problem 10-24 Comparing Mutually Exclusive Projects [LO4] Rust Industrial Systems Company is trying to decide between two different conveyor belt
4 10 points eBook Problem 10-24 Comparing Mutually Exclusive Projects [LO4] Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $350,000, has a four-year life, and requires $141,000 in pretax annual operating costs. System B costs $430,000, has a six-year life, and requires $135,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 8 percent. Calculate the EAC for both conveyor belt systems. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Print References System A System B $ $ 196,402.28 182,548.95: Which conveyor belt system should the firm choose? System A O:System B
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