Find AW for Design A and Design B at 8%

Problem 7-42 (algorithmic) Question Help A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 35%, and MACRS depreciation is used. If the desired after-tax return on investment is 8% per year, which design should be chosen? Design A Design B $1,240,000 $1,970,000 Capital investment $1,030,000 $1,160,000 MV at end of useful life $280,000 $340,000 Annual revenues less expenses MACRS property class 5 years 5 years Useful life 7 years 6 years Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. E Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. Calculate the AW value for the Design A. AWA (8%) (Round to the nearest hundreds.)