Question: Eads Industrial Systems Company (EISC) is trying to decide between two different conveyor belt systems. System A costs $237,000, has a five-year life, and requires

 Eads Industrial Systems Company (EISC) is trying to decide between two

Eads Industrial Systems Company (EISC) is trying to decide between two different conveyor belt systems. System A costs $237,000, has a five-year life, and requires $113,000 in pretax annual operating costs. System B costs $830,000, has a seven-year life, and requires $120,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out. The tax rate is 21 percent and the discount rate is 6 percent. What is the NPV of the project you should accept? Round to the nearest dollar

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