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AAA Trucking in Sydney, Australia uses the following: before-tax MARR = 14% per year, after-tax MARR = 7% per year, and T e = 50%.

AAA Trucking in Sydney, Australia uses the following: before-tax MARR = 14% per year, after-tax MARR = 7% per year, and Te = 50%. Two new spray machine options have the following estimates and will generate the same GI each year.

Machine A B
First Cost, $ 15,000 24000
Salvage Value, $ 3,000 5,000
AOC, $ per Year 3200 1600
Life, Years 10 10

Perform after-tax PW analysis using MACRS depreciation with a 5-year recovery period using a spreadsheet. Assume the machines will be retained for 10 years and then sold at the estimated salvage values. (Please upload your response/solution using the controls below.)

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