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2.1 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.
2.1 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: $807,500 Annual revenues less expenses: $380,000 MACRS property class (years): 5 useful life (years): 7 Design B: . Capital investment: $2,000,000 MV at end of useful life: $977,500 Annual revenues less expenses: $570,000 MACRS property class (years): 5 useful life (years): 6 1) What is the AW of the ATCF of Design A
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