Calculating AW....

A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 38%, and MACRS depreciation is used. If the desired after-tax return on investment is 11% per year, which design should be chosen? Design A Design B Capital investment $910,000 $1,910,000 MV at end of useful life $910,000 $1,140,000 Annual revenues less expenses $170,000 $440,000 MACRS property class 5 years 5 years Useful life 7 years 6 years Click the icon to view the GDS Recovery Rates (rk) for the 5 ?year property class. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 11 % per year. Calculate the AW value for the Design A. AWA(11%)=$(Round to the nearest hundreds.)