Question: Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $ 3 3 0 , 0 0 0
Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $ has a fouryear life, and requires $ in pretax annual operating costs. System B costs $ has a sixyear life, and requires $ in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is percent and the discount rate is percent. Calculate the EAC for both conveyor belt systems. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to decimal places, eg
tableSystem ASystem B
Which conveyor belt system should the firm choose?
System B
System A
Your firm is contemplating the purchase of a new $ computerbased order entry system. The system will be depreciated straightline to zero over its fiveyear life. It will be worth $ at the end of that time. You will save $ before taxes per year in order processing costs, and you will be able to reduce working capital by $this is a onetime reduction If the tax rate is percent, what is the IRR for this project? Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
IRR
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