Calculate the eac for both conveyor belt systems

Reference no: EM131796537

Question: Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $212,000, has a four-year life, and requires $68,000 in pretax annual operating costs. System B costs $300,000, has a six-year life, and requires $62,000 in pretax annual operating costs. Suppose LISC always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 30 percent and the discount rate is 9 percent. Calculate the EAC for both conveyor belt systems. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)

Reference no: EM131796537

Questions Cloud

What is the chance that no student gets exactly 100 heads : Approximately what is the chance that no student gets exactly 100 heads?

Action the city can take and the basis for this action : The Neelans do not want to sell. Discuss what course of action the city can take and the basis for this action.

Increase or decreases the above chances : Suppose that a baseball player's long-run batting average (number of hits per time at bat) is 300. Assuming that each time at bat yields a hit with a consisted

Sample evaluation plan for a strategic plan : Discuss systems approach and cite a source with in your discussion. Sample evaluation plan for a strategic plan.

Calculate the eac for both conveyor belt systems : Lang Industrial Systems Company (LISC) is trying to decide between two different conveyor belt systems. System A costs $212,000, has a four-year life.

Intend to vote for a particular candidate : A pollster wishes to know the percentage p of people in a population who intend to vote for a particular candidate.

Discuss non-parametric distribution and tests : Discuss non-parametric distribution and tests, and distinguish between observed and expected datum - Choose a Chi Square test when appropriate per the study

Compute the required sales in dollars to break even : Turgo Corp. had total variable costs of $180,120, total fixed costs of $168,000, and total revenues of $300,200. Compute required sales in dollars to break even

Discuss a deduction on their oregon income tax returns : If they are subject to any taxes, can they use those taxes as a credit or a deduction on their Oregon income tax returns, as taxes paid to another state

User Account

All Pages