A manufacturing process can be designed for varying degrees

Question

Question: A manufacturing process can be designed for varying degrees of automation. The following is relevant cost information:

Annual                                Annual Power

First                                         Labor                        and Maintenance

Degree           Cost                    Expense                         Expense

A               $10,000                   $9,000                            $500

B                 14,000                    7,500                              800

C                 20,000                    5,000                             1,000

D                 30,000                    3,000                             1,500

Determine which is best by after-tax analysis using an income tax rate of 40%, an after-tax MARR of 15%, and SL depreciation. Assume that each has a life of five years and no BV or MV.