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2) What is the AW of the ATCF of Design B 3) For the design that should be chosen if repeatability assumption applies, please write
2) What is the AW of the ATCF of Design B
3) For the design that should be chosen if repeatability assumption applies, please write the AW of the ATCF of the selected Design here.
4) What is the EVA of Design B in year 4?
A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 40%, and MACRS-GDS depreciation is used. If the desired after-tax return on investment is 10% per year, Design A: . Capital investment: $1,260,000 MV at end of useful life: $935,000 Annual revenues less expenses: $460,000 MACRS property class (years): 5 useful life (years): 7 Design B: Capital investment: $2,000,000 MV at end of useful life: $765,000 Annual revenues less expenses: $660,000 MACRS property class (years): 5 useful life (years): 6 . 1) What is the AW of the ATCF of Design A A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 40%, and MACRS-GDS depreciation is used. If the desired after-tax return on investment is 10% per year, Design A: . Capital investment: $1,260,000 MV at end of useful life: $935,000 Annual revenues less expenses: $460,000 MACRS property class (years): 5 useful life (years): 7 Design B: Capital investment: $2,000,000 MV at end of useful life: $765,000 Annual revenues less expenses: $660,000 MACRS property class (years): 5 useful life (years): 6 . 1) What is the AW of the ATCF of Design AStep by Step Solution
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