Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized as follows.

Fixture X Fixture Y Capital investment $60,000 $80,000 AOE $6,000 $5,000 Useful life 6 8 MV $12,000 $8,000 Depreciation Method SL to zero value Book value over 5 years MCRS (GDS) with 5-year recovery period

The effective tax rate is 50%. If MARR=10%/year, The least expensive alternative is Fixture X.

True or False?