Hugh's Belt Systems is trying to decide between two different conveyor belt systems. System A costs $430,000, has a four-year life, and requires $120,000 in pre-tax annual operating costs. System B costs $540,000, has a six-year life, and requires $80,000 in pre-tax annual operating costs. The asset class will remain open at the end of the life of either machine, and there is no salvage value. Both systems depreciate at a 30% CCA rate. Whichever project is chosen, it will be continuously replaced for the foreseeable future. a) If the firm's tax rate is 34% and the appropriate discount rate is 20%, which of the two conveyor systems should they choose? b) One of your industrial engineers believes that any given "System A" belt would have a 50% probability of lasting for 5 years and 50% probability of lasting for 4 years before replacement is required. Does this change your decision in part (a)? Please show your calculations. Hugh's Belt Systems is trying to decide between two different conveyor belt systems. System A costs $430,000, has a four-year life, and requires $120,000 in pre-tax annual operating costs. System B costs $540,000, has a six-year life, and requires $80,000 in pre-tax annual operating costs. The asset class will remain open at the end of the life of either machine, and there is no salvage value. Both systems depreciate at a 30% CCA rate. Whichever project is chosen, it will be continuously replaced for the foreseeable future. a) If the firm's tax rate is 34% and the appropriate discount rate is 20%, which of the two conveyor systems should they choose? b) One of your industrial engineers believes that any given "System A" belt would have a 50% probability of lasting for 5 years and 50% probability of lasting for 4 years before replacement is required. Does this change your decision in part (a)? Please show your calculations