A local company is considering buying new equipment to solve a safety problem. Two different models are available on the market with the same estimated useful life of $10$ years. The company uses the $7-$year property MACRS depreciation method and pay income taxes based on $21\%$ rate. Which model would you recommend based on an after$-$tax analysis with an after$-$tax MARR of $10\%$ if the company plans to sell the equipment after five years of use for $30\%$ of its original cost?

$\backslash$table$[[$Data$,$Model A$,$Mode$/$ B$],[$Useful Life, Years,$10,10],[$First Cost $($including installation$),$$$80,000,$$$90,000],[$Salvage Value $($at the end of the useful life$),$$$20,000,$$$22,500],[$Net annual operating income,$$19,000,$$$21,500]]$

The following must be included in the analysis:

a$)$ the appropriate decision criteria $(2$ pts$)$

b$)$ the required cash flow diagrams for the BTCFs $(4$ pts$)$

c$)$ show ALL calculations $(20$ pts$)$

d$)$ which Model do you recommend? Why? $(3$ pts$)$

e$)$ explain why companies should evaluate their capital investments considering taxes $(5$ pts$)$