Question: Please provide details for full credits 2 points/question for correct answer ony 1. (10 points) Hagar Industrial Systems Company (HISC) is trying to decide between

 Please provide details for full credits 2 points/question for correct answer

Please provide details for full credits 2 points/question for correct answer ony 1. (10 points) Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $290,000, has a four-year life, and requires $85,000 in pretax annual operating costs. System B costs $405,000, has a six- year life, and requires $75,000 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 when a conveyor belt system wears out, it must be replaced. If the tax rate is 34 percent and the discount rate is 11 percent, which system should the firm choose and why

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