Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $51,300, 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 $76,500.00, 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 25%, and MARR is an after-tax 10%.

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

AW_A =_______ $enter a dollar amount AW_B =_______ $enter a dollar amount

Which should be selected?

(Investment A; Investment B) select an investment

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

$enter a dollar amount