Question: Matta Manufacturing is trying to decide between two different conveyor belt systems and requires $74,000 in pretax annual operating costs. System B costs $336,000, annual
Matta Manufacturing is trying to decide between two different conveyor belt systems and requires $74,000 in pretax annual operating costs. System B costs $336,000, annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. System A costs $236,000, has a four-year life, s a six-year life, and requires $68,000 in pretax ha Calculate the NPV for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g, 32.16.) NP System A System EB Which conveyor belt system should the firm choose? System A O System 8
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