EDP is trying to decide between two different conveyor belt

systems. System A costs $$438,000,$ has a six$-$year life, and requires

$$83,000$ in pretax annual operating costs. System B costs $$369,000,$

has a five$-$year life, and requires $$92,000$ 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 $23$ percent and the discount rate is $14\mathrm{.}2$

percent. Which system should the firm choose and why?$$