Rust Industrial Systems is trying to decide between two different conveyor belt systems. System A costs $$228,000,$ has a four$-$year life,

and requires $$72,000$ in pretax annual operating costs. System B costs $$324,000,$ has a six$-$year life, and requires $$66,000$ 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 system is chosen, it will not be replaced when it wears out. The tax rate is $23$ percent and the discount rate is $10$ percent.

Calculate the NPV for both conveyor belt systems.

Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to

$2$ decimal places, e$.$g$.,32\mathrm{.}16.$

Which conveyor belt system should the firm choose?

System A

System B