Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. rust industrial systems company is trying to decid

Rust Industrial Systems Company is trying to decide between two different conveyor beit systems. System...

70.2K

Verified Solution

Question

Finance

image

Rust Industrial Systems Company is trying to decide between two different conveyor beit systems. System A costs $335,000, has a four-year Ife, and requires $129,000 in pretax annual operating costs. System B costs $415,000, has a slx-year life, and requires $123,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, It must be repiaced. Assume the tax rate is 24 percent and the discount rate is 9 percent Calculate the EAC for both conveyor belt systems. (A negatlve answer should be Indlcated by a minus sign. Do not round Intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.) Which conveyor belt system should the firm choose? System B System A

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

CORPORATE VALUATION Dantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash...

Finance
Q

Exxon Mobil ( XOM) is one of the half- dozen major oil companies in the world....

Finance
Q

1 point 8 7 6 5 F N P Wee 2 5 378 3 M...

Geometry
Q

Calculate the 95 confidence interval for mean total intake of sodium over the 14 days...

Statistics
Q

Find y if y 2x6 9x5 3 3

Calculus
Q

On-Road Wheels, Inc., manufactures a basic road bicycle. Production and sales data for...

Accounting
Q

Question 2: P5-3A Presented here are selected transactions for Norlan Inc. during September of the...

Accounting
Q

In a press release, Dick's Sporting Goods reported that its fiscal first quarter net income...

Accounting
Q

Ivanhoe Co. is building a new hockey arena at a cost of $2,680,000....

Accounting
Q

Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The companys accounting system says...

Accounting
Q

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold:...

Accounting
Q

trasactar, ifar, amount box does noe iire an entry, leave PE.13-08 ALGO 20

Accounting