Which of the two fixtures should be recommended

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Reference no: EM131506344

Question: Two fixtures are being considered for a particular job in a manufacturing firm. The pertinent data for their comparison are summarized in Table. The effective federal and state income tax rate is 50%. Depreciation recapture is also taxed at 50%. If the after-tax MARR is 8% per year, which of the two fixtures should be recommended? State any important assumptions you make in your analysis.

Reference no: EM131506344

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