Question: The answer is incorrect. Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $295,000, has a four-year
Rust Industrial Systems Company is trying to decide between two different conveyor belt systems. System A costs $295,000, has a four-year life, and requires $97,000 in pretax annual operating costs. System B costs $375,000, has a six-year life, and requires $91,000 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 21 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor beit systems. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Which conveyor belt system should the firm choose
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