Question: Hagar Industrial Systems is trying to decide between two different conveyor belt systems. System A costs $220,000, has a four year life, and requires $70,000

Hagar Industrial Systems is trying to decide between two different conveyor belt systems. System A costs $220,000, has a four year life, and requires $70,000 in pretax annual operating cocts. System B costs $312,000, has a six year life, and requires $64,000 in pretax annual operating costs. Both systems are to be depreciated straight line to zero over theori lives and will have a zero salavge value. Whichever system is chosen, will NOT be replaced when it wears out. The tax rate is 34% and the discount rate is 8%. Calculate the NPV for both conveyor belt systems.

Please show work. Excel or manually may be used.

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