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Eads Industrial Systems Company (EISC) is trying to decide between two different conveyor belt systems. System A costs $427,000, has a 6-year life, and requires $112,000 in pretax annual operating costs. System B costs $517,000, has an 8-year life, and requires $79,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have a zero salvage value. Whichever system is chosen, it will not be replaced when it wears out.
The tax rate is 33 percent and the discount rate is 24 percent. Which system should the firm choose and why?
Please use the process of net present value to determine answer.
Tiller uses the periodic inventory system. Using weighted-average inventory method, Evaluate cost of goods sold for the month of January?
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question a spare parts supplier is thinking of building a car from the parts he has in his yard. he does not expect any
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