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Letang Industrial Systems Company ( LISC ) is trying to decide between two different conveyor belt systems. System A costs $ 2 6 5 ,

Letang Industrial Systems Company (LISC) is trying to decide between two different
conveyor belt systems. System A costs $265,000, has a four-year life, and requires
$73,000 in pretax annual operating costs. System B costs $345,000, has a six-year life,
and requires $67,000 in pretax annual operating costs. The company always needs a
conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is
21 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.)Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $265,000, has a four-year life, and requires $73,000 in pretax annual operating costs. System B costs $345,000, has a six-year life, and requires $67,000 in pretax annual operating costs. The company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 21 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.)
Which conveyor belt system should the firm choose?
multiple choice
System B
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