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A local company is considering buying a new machine to solve a safety problem. Two different models are available on the market. The repetitivity assumption

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A local company is considering buying a new machine to solve a safety problem. Two different models are available on the market. The repetitivity assumption does not apply. The company uses the straight-line depreciation method and pay income taxes based on 30%. Which model would you recommend based on an after-tax analysis with an after-tax MARR of 10%? (37 points) Data Model A Model B Useful Life in years 10 15 First Cost (including installation) $85,000 $95,000 Salvage Value (at the end of the useful life) $21,250 $23,750 Annual Operating Costs (years 1 thru 10) $ 16,000 $12,000 Annual Operating costs (years 11 thru 15) $13,000 It is required to prepare a detailed solution on a separate sheet of paper or in Microsoft Excel including the following: the appropriate decision criteria (2 pts) the required cash flow diagrams (4 pts) clearly present the equivalency models (6 pts) show ALL calculations (20 pts) model recommended (2 pts) explain why companies should evaluate their capital investments considering taxes (3 pts) N/A Seleccione una: O a. Model A O b. Model B A local company is considering buying a new machine to solve a safety problem. Two different models are available on the market. The repetitivity assumption does not apply. The company uses the straight-line depreciation method and pay income taxes based on 30%. Which model would you recommend based on an after-tax analysis with an after-tax MARR of 10%? (37 points) Data Model A Model B Useful Life in years 10 15 First Cost (including installation) $85,000 $95,000 Salvage Value (at the end of the useful life) $21,250 $23,750 Annual Operating Costs (years 1 thru 10) $ 16,000 $12,000 Annual Operating costs (years 11 thru 15) $13,000 It is required to prepare a detailed solution on a separate sheet of paper or in Microsoft Excel including the following: the appropriate decision criteria (2 pts) the required cash flow diagrams (4 pts) clearly present the equivalency models (6 pts) show ALL calculations (20 pts) model recommended (2 pts) explain why companies should evaluate their capital investments considering taxes (3 pts) N/A Seleccione una: O a. Model A O b. Model B

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