I need help with the following case assignment. The case assignment is attached.

Problems: 20. Comparing Mutually Exclusive Projects [ LO1] Lang Industrial Systems Company ( LISC) is trying to decide between two different conveyor belt systems. System A costs $ 240,000, has a fouryear life, and requires $ 75,000 in pretax annual operating costs. System B costs $ 340,000, has a six-year life, and requires $ 69,000 in pretax annual operating costs. Both systems are to be depreciated straight- line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. If the tax rate is 34 percent and the discount rate is 8 percent, which project should the firm choose? Years Project A Project cost Annual cost Annual depreciation Annual costs before tax Income tax 34% Net cost after tax Depreciation Net present value 8% discount rate Cost of project A Years Project B Project cost Annual cost Annual depreciation Annual costs before tax Income tax 34% Net cost after tax Depreciation Net present value 8% discount rate Cost of project A If the system will not be replaced when it wears out, then System A should be chosen, because it has the more positive NPV. 0 1 2 3 4 $0 $0 0 0 0 0 0 $0 0 $0 0 1 $0 0 0 0 0 0 $0 2 $0 0 0 0 0 0 $0 3 $0 0 0 0 0 0 $0 4 5 6 $0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0 $0 0 0 0 0 0 $0