Question: Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000, has a four-year life, and requires $85,000 in pretax

 Matta Manufacturing is trying to decide between two different conveyor belt

Matta Manufacturing is trying to decide between two different conveyor belt systems. System A costs $280,000, has a four-year life, and requires $85,000 in pretax annual operating costs. System B costs $396,000, has a six-year life, and requires $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Suppose the company always needs a conveyor belt system; whern one wears out, it must be replaced. Assume the tax rate is 35 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) EAC System A SystemB Which conveyor belt system should the firm choose? O System A O System B

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