Two machines are being considered for a particular job in a manufacturing firm. The effective federal and state income tax rate is 20%. Depreciation recapture is also taxed 20%. If the after- tax MARR is 10% per year, which of the two machines should be recommended? Machine A Machine B Capital Investment 35000 45000 Annual operating 2000 5000 expenses Useful life (years) 6 Market Value 7000 9000 Depreciation SL to zero book value MACRS (GDS) with 5-year Method over 5 years recovery period Machine A EOY BTCF Depr. Taxable Income income ATCE Tax Machine B EOY BTCF GDS Recovery Rate Depr. Taxable Income Income ATCF Tax Om sto -4000 Machine B: Taxable income EOY 4: Drag answer here -10501 -200 Machine A: ATCF EOY 6: 3000 Drag answer here -7962 Machine B -2000 Drag answer here If the after-tax MARR is 10% per year, which of the two machines should be recommended? 7000 -2272 2592 Machine A: Depreciation amount EOY 3: Drag answer here -1120 5600 Machine A: Equivalent after tax annual worth of this -7592 Drag answer here 7200 0.0576 5184 Machine B: GDS Recovery Rate EOY Dancerere isikuniversity moms.net/mod/au/attemptpholattempt5104. rid 69367 5184 Machine B: GDS Recovery Rate Oy Drag answer here Machine A 0.1152 -10184 Machine B: ATCF EOY 2 Drag answer here - 1600 Machine B: Depreciation amount EOY 6 Drag answer here Drag answer here Machine A: Taxable income EOY 6": Drag answer here Machine A: ATCF EOY 6": Drag answer here Machine B: Equivalent after tax annual worth of this investment A Drag answer here me left 0:27:42 Machine A: Taxable income EOY 6*: Drag answer here Machine A: ATCF EOY 6: Drag answer here Machine B: Equivalent after tax annual worth of this investment (AW): Drag answer here Machine B: ATCF EOY 8": Drag answer here