System A costs $305,000, has a 4-year life, and requires $105,000 in pretax annual operating costs. System B costs $385,000, has a 6-year life, and requires $99,000 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 23 percent and the discount rate is 11 percent.

Calculate the EAC for both conveyor belt systems.