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Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $ 3 2 5 , 0 0 0

Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $325,000, has a four-year life, and requires $121,000 in pretax annual operating costs. System B costs $405,000, has a six-year life, and requires $115,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 11 percent. Calculate the EAC for both conveyor belt systems.

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