Question
Hello! I found system A, -196,402.28 but I can't figure out how to get System B -- can you help? Hagar Industrial Systems Company (HISC)
Hello!
I found system A, -196,402.28 but I can't figure out how to get System B -- can you help?
Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $350,000, has a 4-year life, and requires $141,000 in pretax annual operating costs. System B costs $430,000, has a 6-year life, and requires $135,000 in pretax annual operating costs. Suppose the companyalways 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.
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