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A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis
A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information. Determine which is best by after-tax analysis using an income tax rate of 28%, an after-tax MARR of 14%, and SL depreciation. Assume that each has a life of four years and no BV or MV. Annual Power and Maintenance Expense First Degree Cost Annual Labor Expense A $11,000 $8,500 $300 B 15,000 7,500 800 C 21,000 4,000 1,000 D 33,000 3,000 1,500 Click the icon to view the interest and annuity table for discrete compounding when the MARR is 14% per year. Calculate the AW value for the Degree A AWA (14 % ) $ (Round to the nearest dollar.)
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