a) What is the AW of the ATCF of Design A?

b) What is the AW of the ATCF of Design B?

c) What is the EVA of Design B in year 4?

A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 40%, and MACRS-GDS depreciation is used. If the desired after- tax return on investment is 10% per year, Design A: . Capital investment: $1,470,000 MV at end of useful life: $892,500 Annual revenues less expenses: $460,000 MACRS property class (years): 5 useful life (years): 7 Design B: Capital investment: $2,100,000 MV at end of useful life: $765,000 Annual revenues less expenses: $600,000 MACRS property class (years): 5 - useful life (years): 6 A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 40%, and MACRS-GDS depreciation is used. If the desired after- tax return on investment is 10% per year, Design A: . Capital investment: $1,470,000 MV at end of useful life: $892,500 Annual revenues less expenses: $460,000 MACRS property class (years): 5 useful life (years): 7 Design B: Capital investment: $2,100,000 MV at end of useful life: $765,000 Annual revenues less expenses: $600,000 MACRS property class (years): 5 - useful life (years): 6