Rust Industrial Systems is trying to decide between two different conveyor belt systems. System A costs $$228,000,$ has a four$-$year life,

and requires $$72,000$ in pretax annual operating costs. System B costs $$324,000,$ has a six$-$year life, and requires $$66,000$ 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; when one wears out, it must be replaced. Assume the tax rate is $23$

percent and the discount rate is $10$ percent. Calculate the EAC for both conveyor belt systems.

Note: Your answers should be negative values and indicated by minus signs. Do not round intermediate calculations and round

your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

System A

System B

Which conveyor belt system should the firm choose?

System A

System B