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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 $101000 in pretax annual operating costs System B costs $380,000, has a six-year life. and requires $95.000 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 10 percent Calculate the NPV for both conveyor belt systems (A negative answer should be indicated by a minus sign. Do not found intermediate calculations and round your answers to 2 decimal places, e.g. 32.16.) ces T System A System B Which conveyor belt system should the firm choose? System A O System B
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