Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized in the following table. The effective federal and state income tax rate is 25%. Depreciation recapture is also taxed at 25%. If the after-tax MARR is 8% per year, which of the two fixtures should be recommended? Assume repeatability.

Calculate the AW value for the Fixture X

Please help to solve using excel.

Fixture X Fixture Y $40,000 $30,000 $3,000 $2,500 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $6,000 SL to zero book value over 5 years 8 years $4,000 MACRS (GDS) with 5-year recovery period GDS Recovery Rates (rk) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576 Fixture X Fixture Y $40,000 $30,000 $3,000 $2,500 Capital investment Annual operating expenses Useful life Market value Depreciation method 6 years $6,000 SL to zero book value over 5 years 8 years $4,000 MACRS (GDS) with 5-year recovery period GDS Recovery Rates (rk) Year 5-year Property Class 1 0.2000 2 0.3200 3 0.1920 4 0.1152 5 0.1152 6 0.0576