A firm must decide between two designs A and B. Their effective income rate is 50%. If the desired after-tax return on investment is 8% per year, which alternative should be chosen? *Use repeatability assumption and AW method. Detail analysis is required* (20%) A B Capital investment 30000 40000 MV at end of useful life 6000 4000 Annual expenses 3000 2500 Depreciation method SL to zero book value over MACRS (GDS) With 5- 5 years year recovery period Useful life (in years) 6 8