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$.,32\mathrm{.}16.)$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$.,32\mathrm{.}16.)$

Which conveyor belt system should the firm choose?

multiple choice

System B