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Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems, System A costs $240,000, has a four-year life and requires
Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems, System A costs $240,000, has a four-year life and requires $75.000 in pretax annual operating costs System B costs $340,000, has a six-year life, and requires $69.000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over the lives and will have zero salvage Value Whichever project is chosen, it will not be replaced when it wears out. The tax rate is 34 percent and the discount rate is 8 percent Calculate the NPV for both conveyor belt systems (Negativi sign. Round your answers to 2 decimal places. (e.g. 13216 s hould be indicated by a minus System A System B Which conveyor belt system should the firm choose? System System Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems, System A costs $240,000, has a four year life, and requires $75.000 in Pretax annual operating costs System B costs $340,000, has a six-year life, and requires $69.000 in Pretax annual operating costs Whichever project is chosen, LISC always needs a conveyor belt system when one wears out, it must be replaced. Assume the tax rate is 34 percent and the discount rate is 8 percent Calculate the EAC for both conveyor belt systems (Negative amount should be indicated by minus sign. Round your answers to 2 decimal places. e... 32.16) EAC System A System B Which conveyor belt system should the firm choose? System A System B
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