Question
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $300,000, has a four-year life, and requires
Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $300,000, has a four-year life, and requires $101,000 in pretax annual operating costs. System B costs $380,000, has a six-year life, and requires $95,000 in pretax annual operating costs. A straight-line depreciation is used with zero salvage value. Assume the tax rate is 22 percent and the discount rate is 10 percent. Calculate the EAC for both conveyor belt systems. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations or use 1000 separator. Enter your final answers as integar, e.g., 1234.)
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System A=
System B=
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