Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $350,000, has a four-year life, and requires $141,000 in pretax annual operating costs. System B costs $430,000, has a six-year life, and requires $135,000 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 22 percent and the discount rate is 8 percent. ok Calculate the NPV 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.) 3 ices System A System B Which conveyor belt system should the firm choose? System B System A Your company has been approached to bid on a contract to sell 4,850 voice recognition (VR) computer keyboards a year for four years. Due to technological Improvements, beyond that time they will be outdated and no sales will be possible. The equipment necessary for the production will cost $3.2 million and will be depreciated on a straight- line basis to a zero salvage value. Production will require an investment in net working capital of $400,000 to be returned at the end of the project, and the equipment can be sold for $315,000 at the end of production. Fixed costs are $575,000 per year, and variable costs are $76 per unit. In addition to the contract, you feel your company can sell 11,600, 13,700, 18,000, and 10,500 additional units to companies in other countries over the next four years, respectively, at a price of $172. This price is fixed. The tax rate is 21 percent, and the required return is 9 percent. Additionally, the president of the company will undertake the project only if it has an NPV of $100,000. What bid price should you set for the contract? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Bid price