PLEASE SHOW ALL WORK AND FORMULAS

PLEASE SHOW ALL WORK AND FORMULAS

MARCRS Schedule for assets with five-year life MACRS Percent 20% 32% 19.20% 11.52% 11.52% 5.76% Year 16. Pags Industrial Systems Company (PISC) is trying to decide between two different conveyor belt systems. System A costs $405,000, has a three-year life, and requires $105,000 in pretax annual operating costs. System B costs $450,000, has a five-year life, and requires $60,000 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. If the tax rate is 34% and the discount rate is 20%, which project should the firm choose