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 35%. Depreciation recapture is also taxed at 35%. 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

Calculate the AW value for the Fixture Y

Capital investment Annual operating expenses Useful life Market value Depreciation methodSL to zero book value over 5 years Fixture $30,000 $3,000 6 years $6,000 Fixture $50,000 $5,000 8 years $8,000 MACRS (GDS) with 5-year recovery period