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The company is in the 3 5 % tax bracket and assumes classical straight line depreciation for alternative comparisons performed at an after - tax

The company is in the 35% tax bracket and assumes classical straight line depreciation for alternative comparisons performed at an after-tax minimum acceptable rate of return (MARR) of 7% per year. A salvage value of zero is used when depreciation is calculated; however, system B can be sold after 5 years for an estimated 20% of its first cost. System A has no anticipated salvage value. Determine which is more economical using an annual worth (AW) analysis worked by hand.
If the annual worth analyThe annual worth analysis for system B is determined to besis for system A is determined to be $8590.16. What is the annual worth analysis for system B is determined to be?
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