Question: Problem 10-21 Comparing Mutually Exclusive Projects [LO4] Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs
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Problem 10-21 Comparing Mutually Exclusive Projects [LO4] Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $272,000, has a four-year life, and requires $83,000 in pretax annual operating costs. System B costs $384,000, has a six-year life, and requires $77,000 in pretax annual operating costs. Suppose LISC always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 30 percent and the discount rate is 9 percent. Calculate the EAC 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.) EAC System A $ -121657 System B Which conveyor belt system should the firm choose? O System A System B
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