A biotech company has an effective income tax rate of 40%. Recaptured depreciation is also taxed at the rate of 40%. The company must choose one of the following mutually exclusive cryogenic freezers for its tissue samples. The after-tax MARR is 12% per year. Freezer Freezer 2 $10,000 $3,000 SL Capital investment Annual benefit Depreciation method Depreciable life IRS approved SV for depreciation Useful life Actual MV at end of useful life $30,000 $9,000 MACRS 3 years SO 3 years $2,000 5 years $2,000 5 years $2,000 Question 4 6 pts What is after-tax present worth of freezer 12 (Hint: use 25% as the effective income tax rate for freezer 1) D Question 5 6 pts What is after-tax present worth of freezer 2? (Hint: use 40% as the effective income tax rate for freezer 2) D Question 6 8 pts Which freezer will you choose based on after tax present worth that you calculated in questions 4 and 5? O Freezer 2 Freezer 1