Lang industrial systems company lisc is trying to decide, Ask an Expert

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Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $240,000, has a four-year life, and requires $75,000 in pretax annual operating costs. System B costs $340,000, has a six-year life, and requires $69,000 in pretax annual operating costs. Whichever project is chosen, LISC always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 34 percent and the discount rate is 8 percent.

Calculate the EAC for both conveyor belt systems.

System A=

System B=

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91793029

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