2) Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparis

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2 Two Fixtures Are Being Considered For A Particular Job In A Manufacturing Firm The Pertinent Data For Their Comparis 1 (25.54 KiB) Viewed 43 times

2) Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized in the table below. The effective federal and state income tax rate is 50%. Depreciation recapture is also taxed 50%. If the after-tax MARR is 8% per year, which of the two fixtures should be recommended? State any important assumptions you make in your analysis. Fixture X Fixture Y Capital Investment Annual operating $30,000 $3,000 $40,000 $2,500 expenses Useful life 8 years $4,000 Market Value Depreciation Method 6 years $6,000 SL to zero book value over 5 years MACRS (GDS) with 5-year recovery period