Problem 7-39 (algorithmic) Assigned Media Question Help Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized in the following table. The effective federal and state income tax rate is 30%. Depreciation recapture is also taxed at 30%. If the after-tax MARR is 6% per year, which of the two fixtures should be recommended? Assume repeatability. Fixture X $20,000 Fixture Y $45,000 $2,000 $4,000 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $4,000 SL to zero book value over 5 years 8 years $8,000 MACRS (GDS) with 5-year recovery period Calculate the AW value for the Fixture X. AWx(6%) = $ (Round to the nearest dollar.) N 1 2 3 4 5 6 7 8 9 10 Discrete Compounding; i=6% Single Payment Uniform Series Compound Compound Sinking Amount Present Amount Present Fund Factor Worth Factor Factor Worth Factor Factor To Find F To Find P To Find F To Find P To Find A Given P Given F Given A Given A Given F FIP PIF FIA PIA AIF 1.0600 0.9434 1.0000 0.9434 1.0000 1.1236 0.8900 2.0600 1.8334 0.4854 1.1910 0.8396 3.1836 2.6730 0.3141 1.2625 0.7921 4.3746 3.4651 0.2286 1.3382 0.7473 5.6371 4.2124 0.1774 1.4185 0.7050 6.9753 4.9173 0.1434 1.5036 0.6651 8.3938 5.5824 0.1191 1.5938 0.6274 9.8975 6.2098 0.1010 1.6895 0.5919 11.4913 6.8017 0.0870 1.7908 0.5584 13.1808 7.3601 0.0759 Capital Recovery Factor To Find A Given P AIP 1.0600 0.5454 0.3741 0.2886 0.2374 0.2034 0.1791 0.1610 0.1470 0.1359