A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $80,000 with $3,000 salvage value after 16 years. The other can be purchased and installed for $90,000 with $2,000 salvage value after 16 years. Operation and maintenance for each is expected to be $21,000 and $15,000 per year, respectively. The granary uses MACRS-GDS depreciation, has a marginal tax rate of 40%, and has a MARR of 9% after taxes.

Show the AW values used to make your decision: A) Conveyor 1: $ Hint: Answer is NOT - 206,320

B) Conveyor 2: $ Hint: Answer is NOT -69040

What must the cost of the second (more expensive) conveyor be for there to be no economic advantage between the two? C) Cost of the second conveyor: $

Tax Table:

Taxable Income (TI)	Tax Rate (f)	Income Tax (T)
0 < TI 50,000	.15	.15 (TI)
50,000 < TI 75,000	.25	7500 + 0.25 (TI - 50,000)
75,000 < TI 100,000	.34	13,750 + 0.34 (TI - 75,000)
100,000 < TI 335,000	.039(.34 +.05)	22,250 + 0.39 (TI - 100,000)
335,000 < TI 10,000,000	.34	113,900 + 0.34(TI - 335,000)
10,000,000 < TI 15,000,000	.35	3,400,000 + 0.35 (TI - 10,000,000)
15,000,000 < TI 18,333,333	.38(0.35+0.03)	5,150,000 + 0.38 (TI - 15,000,000)
18,333,333 < TI	.35	.35 (TI)