Question: Homework: Chapter 7 - Depreciation & After-Tax Analysis Save Score: 0.33 of 1 pt + 7 of 7 (7 complete) HW Score: 90.48%, 6.33 of
Homework: Chapter 7 - Depreciation & After-Tax Analysis Save Score: 0.33 of 1 pt + 7 of 7 (7 complete) HW Score: 90.48%, 6.33 of 7 p We Problem 7-42 (algorithmic) Question Help Afirm must decide between two silicon layer chip designs from Intel Their effective income tax rate is 28%, and MACRS depreciation is used. If the desired after-tax return on investment is 11% per year, which design should be chosen? NNNNNNN Capital investment MV at end of useful life Annual revenues less expenses MACRS property class Useful life Design $1,070,000 S960,000 $210,000 5 years 7 years Design B $2,150,000 $1,050,000 $450,000 5 years 6 years Calculate the AW value for the Design A AW (11%) $ (Round to the nearest dolar) Enter your answer in the answer box and then click Check Answer 2 remaining 2 parts Check
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