Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs

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Hagar Industrial Systems Company (HISC) is trying todecide between two different conveyor belt systems. System A costs$290,000; has a four-year life and requires $89,000 in pretaxannual operating costs. System B costs $410,000; has a six-yearlife and required requires $79,00 in pretax operating costs. Bothsystems are to be depreciated straight-line to zero over theirlives and will have zero salvage value. Whichever system is chosen,it will not be replaced when it wears out. If the tax rate is 34percent and the discount rate is 7.5 percent, which system shouldthe firm choose?