Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $53,700, 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 $81,500.00, 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%.

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

AWA = $enter a dollar amount -110559

AWB = $enter a dollar amount -91197

Which should be selected? (Investment A; Investment B) select an investment Investment B

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