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Dangerfield Industrial Systems Company (DISC) is trying to decide between two different conveyor belt systems.

Dangerfield Industrial Systems Company (DISC) is trying to decide between two different conveyor belt systems. System A costs $430,000, has a four-year life, and requires $110,000 in pretax annual operating costs. System B costs $570,000, has a six-year life, and requires $98,000 in pretax annual operating costs. Both systems are to be depreciated straight-line to zero over their lives and will have zero salvage value. Whichever project is chosen, it will not be replaced when it wears out. If the tax rate is 34 percent and the discount rate is 11 percent, the NPV for project A is $ and the NPV for project B is $ . Therefore, the firm should choose project

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System A Total Cash Flows with Present Value Cash Inflows Depreciation Cash Flow Tax 34% Cash Flow Depreciation Discount... View the full answer

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