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can expenses for these two investments to be equivalent? 36. A virtual mold apparatus for producing dental crows permits an infinite number of shapes to
can expenses for these two investments to be equivalent? 36. A virtual mold apparatus for producing dental crows permits an infinite number of shapes to be custom constructed based upon mold imprints taken by dentists. Two models are available. One costs $58,500 and is expected to last 9 years with no sahrage value at that time. Costs of use are 530 per crown and 5,000 crowns per yere are produced. The other mold apparatus costs $87.500, lasts 9 years, has no salvage value, and is less costly to use at S25 per crown. The dental supplier depreciates assets using MACRS, and yet values assets of the companying straight line depreciation. The marginal tax rate is 10% and MARR is an after-tax 10% . Based upon the use of MACRS-GDS depreciation (be sure to state the property class), compare the AW of each alternative to determine which should be selected b. Based upon the use of straight line (no half year) depreciation, compare the AW of each alternative to determine which should be selected ANSWER (a) and (b) Select the virtual mold apparatus costing 587,500
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