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Number 13 on page 264 **Comparing Mutually Exclusive Projects - Murray Industrial Systems Company is trying to decide between two different conveyor belt systems. System

Number 13 on page 264 **Comparing Mutually Exclusive Projects - Murray Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $485,000, has a four-year life, and requires $130,000 in pretax annual operating costs. System B costs $650,000, has a six-year life, and requires $115,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. 13. Comparing Mutually Exclusive Projects - Suppose in the previous problem (listed above) that the company always needs a conveyor belt system; when one wears out, it must be replaced. Which project should the firm choose now

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