Two investments involving a virtual mold apparatus for producing dental crowns qualify for different property classes. Investment A has a cost of $58,500, lasts 9 years with no salvage value, and costs $150,000 per year in operating expenses. It is in the 3 -year property class. Imestment B has a cost of $87,500.00, lasts 9 years with no salvage value, and costs $125,000 per year. Investment B, however, is in the 7-year property class. The company marginal tax rate is 25%, and MARR is an after-tax 10%. a. Based upon the use of MACRS-GDS depreciation, compare the AW of each alternative. AWA=$AWB=$ Which should be selected? (Investment A- Investment B) b. What must be Investment B's cost of operating expenses for these two irvestments to be equivalent? $ Round your answer to 2 decimal places. The tolerance is \pm 10
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