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Tommy Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $ 2 7 0 , 0 0 0
Tommy Industrial Systems Company is trying to decide between two different conveyor
belt systems. System A costs $ has a year life, and requires $ in pretax
annual operating costs. System B costs $ has a year life, and requires
$ in pretax annual operating costs. Both systems are to be depreciated straight
line to zero over their lives and will have zero salvage value. Suppose the
company always needs a conveyor belt system; when one wears out, it must be
replaced. Assume the tax rate is percent and the discount rate is percent. Calculate
the EAC for both conveyor belt systems. A negative answer should be indicated by a
minus sign. Do not round intermediate calculations and round your answers to
decimal places, eg
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