Problem 7-39 (algorithmic) 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 25%. Depreciation recapture is also taxed at 25%. If the after-tax MARR is 6% per year, which of the two fixtures should be recommended? Assume repeatability Fixture X $40,000 Fixture Y $45,000 $2,500 $3,500 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $8,000 SL to zero book value over 5 years 8 years $7,000 MACRS (GDS) with 5-year recovery period Calculate the AW value for the Fixture X. AWx(6%) = $ (Round to the nearest dollar.) Problem 7-39 (algorithmic) 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 25%. Depreciation recapture is also taxed at 25%. If the after-tax MARR is 6% per year, which of the two fixtures should be recommended? Assume repeatability Fixture X $40,000 Fixture Y $45,000 $2,500 $3,500 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $8,000 SL to zero book value over 5 years 8 years $7,000 MACRS (GDS) with 5-year recovery period Calculate the AW value for the Fixture X. AWx(6%) = $ (Round to the nearest dollar.)