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Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System System B costs $330,000, has a six-year life, and

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Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System System B costs $330,000, has a six-year life, and requires $67,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their 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 discount rate is 8 percent. A costs $232,000, has a four-year life, and requires $73,000 in pretax annual operating costs. percent and the Calculate the NPV for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, 0.9. 32.16.) NPV System A System B $I Which conveyor belt system should the firm choose? O System A O SystemB References eBook & Resources Dimicuity: Intermedliate Worksheet

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