A Construction Company Has an Effective Income Tax Rate of 39

A construction company has an effective income tax rate of 39%. The company must purchase one of the following two cement mixers for its new project. The after- tax MARR is 10% per year. Select a cement mixer on the basis of after- tax present worth analysis using MACRS with a 5- year recovery period. $$\begin{array} { | l | l | c | } \hline \text { Machine } & \text { Mixer 1 } & \text { Mixer 2 } \\\hline \text { First costs } & \$ 22,000 & \$ 37,000 \\\hline \text { Annual benefits } & \$ 23,000 & \$ 25,500 \\\hline \text { Market Value at the end of the useful life } & \$ 2000 & \$ 2800 \\\hline \text { Life, years } & 6 & 6 \\\hline\end{array}$$