CBOE Manufacturing is trying to decide between two different conveyor belt systems. System A costs $438000 has a 6-year life and requires $140000 in pretax
annual operating costs. System B costs $556000 has a 8-year life and requires $81000 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 16 percent the NPV for project A is $ and the NPV for project B is $ . Therefore the firm should choose
project (Click to select)AB.