Question: firm must decide between two system designs SI an d S2Their effective come tax rate is 40% and the 200% MACRS depreciation is used. If

firm must decide between two system designs SI an d S2Their effective come tax rate is 40% and the 200% MACRS depreciation is used. If the after in tax desired return on investment is 10%, which design should be chosen? S1 S2 $100,000 $200,000 Capital investment Useful life Market value at the end of $30,000 useful life Annual revenues- expenses $20,000 $50,000 $20,000

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