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

Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $300,000, has a 4-year life, and requires $101,000 in pretax annual operating costs. System B costs $380,000, has a 6-year life, and requires $95,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 22 percent and the discount rate is 10 percent.

Calculate the EAC for both conveyor belt systems.
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