(1) Calculate the AW value for the Fixture X.

(2) Calculate the AW value for the Fixture Y.

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 10% per year, which of the two fixtures should be recommended? Assume repeatability. Fixture X Fixture Y $35,000 $30,000 $2,500 $6,000 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $7,000 SL to zero book value over 5 years 8 years $9,000 MACRS (GDS) with 5-year recovery period Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Calculate the AW value for the Fixture X. AWx(10%) = $1 (Round to the nearest dollar.) 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 10% per year, which of the two fixtures should be recommended? Assume repeatability. Fixture X Fixture Y $35,000 $30,000 $2,500 $6,000 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $7,000 SL to zero book value over 5 years 8 years $9,000 MACRS (GDS) with 5-year recovery period Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Calculate the AW value for the Fixture X. AWx(10%) = $1 (Round to the nearest dollar.)