Letang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $290,000, has a four-year life, and requires $93,000 in pretax annual operating costs. System B costs $370,000, has a six-year life, and requires $87,000 in pretax annual operating costs. Suppose the companyalways needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 25 percent and the discount rate is 8 percent.

Calculate the EAC for both conveyor belt systems.(A negative answershould be indicated by a minus sign.Do not round intermediate calculations andround your answers to 2 decimal places, e.g., 32.16.)

Which conveyor belt system should the firm choose?