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Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized as follows. Fixture Y
Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized as follows. Fixture Y $80,000 $5,000 Fixture X Capital investment $60,000 AOE $6,000 Useful life 6 MV $12,000 Depreciation SL to zero value Book value over 5 Method years 8 $8,000 MCRS (GDS) with 5-year recovery period The effective tax rate is 50%. If MARR=10%/year, The best alternative is Fixture Y. True False
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