Question: BOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $272.000. has a four-year life, and requires $83,000 in pretax

 BOE Manufacturing is trying to decide between two different conveyor belt

BOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $272.000. has a four-year life, and requires $83,000 in pretax annual operating costs. System B costs $384,000. has a six-year life, and requires $77.000 in pretax annual operating costs. Suppose BOE always needs a conveyor belt system, when one wears out, it must be replaced. Assume the tax rate is 30 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places (e.g., 32.16).) Which conveyor belt system should the firm choose? System A System B

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