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Using 12% MARR In a chlorine fluxing installation in a large aluminum company, engineers are considering the replacement of existing plastic pipe fittings with more

Using 12% MARR
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In a chlorine fluxing installation in a large aluminum company, engineers are considering the replacement of existing plastic pipe fittings with more expensive, but longer lived, copper fittings. The following table gives a comparison of the capital investments, lives, salvage values, etc., of the two mutually exclusive alternatives under consideration: Use Class 5 MACRS depreciation for option A and Class 7 MACRS depreciation for option B. The company's marginal tax rate if 40%. Select which option is best and show why

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