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Paragraph C: Kingsmill Industrial systems company (KISC) is trying to decide between two different conveyor belt systems. System A costs $290,000, has four-year life and
Paragraph C: Kingsmill Industrial systems company (KISC) is trying to decide between two different conveyor belt systems. System A costs $290,000, has four-year life and requires $80,000 in pre-annual tax operating costs. System B costs $375,000, has a six- year life and requires $74,000 in pre-annual tax operating cots. Both systems are to be depreciated at 30% per year and will have no salvage value. 14. Refer to paragraph C. If the tax rate is 34% and the discount is 8%, which project should the firm choose? a) System A b) System B c) None d) Any system
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