Explain clearly

A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 29%, and MACRS depreciation is used, If the desired after-tax return on investment is 10% per year, which design should be chosen? Design A Design A More Info Capital Investment $1.270.000 $1 890,000 MV at end of useful life $950,000 $1.000,000 Annual revenues less $230.000 $430,000 GDS Recovery Rat expenses MACRS property class 5 years 5 years Year 5 year Proper Useful life 7 years 6 years 0 2000 0.3200 Click the icon to view the GDS Recovery Rates ( ) for the 5-year property class. 0.1920 0 1152 AW,(10%) = $ (Round to the nearest dollar.) 0.1152 0.0576 Calculate the AW value for the Design B. AW (10%) = $ (Round to the nearest dollar.) Based on the AW values. should be chosen. Print Enter your answer in each of the answer boxes