Tax Rate Change

Having decided she needs new equipment for her

business, Mercedes is now considering whether to

make the purchase and claim a corresponding

$$10,000$ deduction at year$-$end or next year.

Mercedes anticipates that, with the new

machinery, her business income will rise such that

her marginal rate will increase from $24$ percent this

year to $32$ percent next year. Assuming her after$-$

tax rate of return is $8$ percent, what should

Mercedes do$?$