Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $220,000, has a four-year life, and requires $70,000 in pretax annual operating costs. System B costs $312,000, has a six-year life, and requires $64,000 in pretax annual operating costs. Suppose 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 amounts should be indicated by a minus sign.Do not round intermediate calculations andround your answers to 2 decimal places, e.g., 32.16.)

	EAC
System A	$
System B	$

Which conveyor belt system should the firm choose?