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?

A; The net present value is $-$$$398,516.$

B; The net present value is $-$$$553,041.$

A; The net present value is $-$$$547,836.$

B; The net present value is $-$$$608,222.$

B: The net present value is $-$$$490,696.$