7-44. A biotech company has an effective income tax rate of 40%. Recaptured depreciation is also taxed at the rate of 40%. The company must choose one of the following mutually exclusive cryogenic freezers for its tissue samples. The after-tax MARR is 12% per year. Which freezer should be selected based on after-tax present worth? (7.10) Freezer 1 Freezer 2 Capital investment $10,000 $30,000 Annual benefit $3,000 $9,000 Depreciation method SL MACRS Depreciable life 3 years 3 years IRS approved SV for $2,000 $0 depreciation Useful life 5 years 5 years Actual MV at end of $2,000 $2,000 useful life