Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $61,500.00, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3-year property class. Investment B has a cost of $89,500.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment B, however, is in the 7-year property class. The company marginal tax rate is 40%, and MARR is an after-tax 10%.

a) Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative

AW of Alternative A: $

AW of Alternative B: $

b) What must be Investment B's cost of operating expenses for these two investments to be equivalent?

** Round your answers to 2 decimal places.