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A firm must decide between two silicon layer chip designs from Intel Their effective income tax rate is

 A firm must decide between two silicon layer chip designs from Intel. Their effective income tax rate is 32%, and MACRS depreciation is used. If the desired after-tax return on investment is 12% per year, which design should be chosen? Design B $2,050,000 Design A $940,000 Capital investment MV at end of useful life $1,170,000 $910,000 Annual revenues less $390,000 $170,000 expenses MACRS property class Useful life 5 years 6 years 5 years 7 years ki Click the icon to view the GDS Recovery Rates (rk) for the 5-year property class. Calculate the AW value for the Design A. (Round to the nearest dollar.) AWA(12%) = $ %3D tic

Feb 01 2020 View more View Less

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