Different systems for pollution control. system

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Reference no: EM131893811

You are considering two different systems for pollution control. System I costs $965,000 and has an eight year life, and has pre tax operating costs of $7,280 per year. System II costs $570,000 and has a five year life, and has pre tax operating costs of $35,100 per year. For both systems use straight line depreciation and assume neither system has any salvage value. If your tax rate is 34% and your discount rate is 11%, which do you prefer? Show with calculations.

Reference no: EM131893811

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