Question: please answer i dont know how to do it help would be greatly appreciated Two investments involving a virtual mold apparatus for producing dental crowns
Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $54,900, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $83,000.00, lasts 9 years with no salvage value and costs $125.000 per year. Investment B. however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10% a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative. AWA-S AW, $ Which should be selected? (Investment A: Investment B) b. What must be investment B's cost of operating expenses for these two investments to be equivalent? Round your answer to 2 decimal places. The tolerance is 10, Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $54,900, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $83,000.00, lasts 9 years with no salvage value and costs $125.000 per year. Investment B. however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10% a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative. AWA-S AW, $ Which should be selected? (Investment A: Investment B) b. What must be investment B's cost of operating expenses for these two investments to be equivalent? Round your answer to 2 decimal places. The tolerance is 10
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