12-74 Padre Pio owns a small business and has taxable A income of $150,000. He is considering four mutu- ally exclusive alternative models of machinery Which machine should be selected on an after- tax basis? The after-tax MARR is 15%. Assume that each machine is MACRS 5-year property and can be sold for a market value that is 25% of the purchase cost, and the project life is 10 years. Model First cost $9000 $8000 $7500 $6200 Annual costs 25 200 300 600 12-74 Padre Pio owns a small business and has taxable A income of $150,000. He is considering four mutu- ally exclusive alternative models of machinery Which machine should be selected on an after- tax basis? The after-tax MARR is 15%. Assume that each machine is MACRS 5-year property and can be sold for a market value that is 25% of the purchase cost, and the project life is 10 years. Model First cost $9000 $8000 $7500 $6200 Annual costs 25 200 300 600