A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information:

Determine which is best by after-tax analysis using an income tax rate of 40%, an after-tax MARR of 15%, and SL depreciation. Assume that each has a life of five years and no BV or MV.

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Annual Annual Power First Labor and Maintenance Degree Cost Expense Expense A $10,000 $9,000 B 14,000 7,500 С 20,000 5,000 D 30,000 3,000 $500 800 1,000 1,500