1. Two electric motors are being considered to power an industrial hoist. The pertinent data for their comparison are summarized in table below. The tax rate is 50%. Depreciation recapture is also taxed at 50%. If the CFAT MARR IS 8% per year, which if the two electric motors should be recommended? FC Motor A Motor B $30,000 $40,000 $3,000 $2,500 Useful Life 6 years 8 years Market value $6,000 $4,000 Depreciation method SL to zero book MACRS with value over 5 years 5-year recovery period Calculate the CFAT thru tabular method (sample table is shown below), show the CFAT CFD, and use AW method for the after-tax analysis. FOR SL Year FC&S GI-OE Depreciation TI TAX CFAT FOR MACRS Year FC&S GI-OE MACRS % Tax CFAT MACRS TI D