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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 $ has a fouryear life, and requires
$ in pretax annual operating costs. System B costs $ has a sixyear life,
and requires $ 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
percent and the discount rate is 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 decimal places, egLetang Industrial Systems Company LISC is trying to decide between two different conveyor belt systems. System A costs $ has a fouryear life, and requires $ in pretax annual operating costs. System B costs $ has a sixyear life, and requires $ 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 percent and the discount rate is 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 decimal places, eg
Which conveyor belt system should the firm choose?
multiple choice
System B
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