1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (f=3%). Tax rate 40% MARR-10% Assume actual cash flows are in real dollars (RS) Ybase-0) AS, = RS, (F/P.f.k - b) = RS, (1+) Depreciation method a For Alt-A Straight-Line (SL) Method (Classical Method) SL=Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. c. ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life A B $10,000 $15,000 $20,000 9,000 5,000 3.000 10,000 6,000 4,000 1.000 1.000 2.000 8 8 8 EOY[k] RS AS-BTCF (1+1) Inflation Depreciation Macrs-GDS Taxable Income TAX - 40*TI AS ATCF BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in RS 2.Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the inflation (2%) to obtain Real Dollars.. Tax rate 38% MARR = 8% Assume actual cash flows are in actual dollars (AS) base-o) RS = AS, (P/F./.k-b) - ASG 1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (f=3%). Tax rate 40% MARR-10% Assume actual cash flows are in real dollars (RS) Ybase-0) AS, = RS, (F/P.f.k - b) = RS, (1+) Depreciation method a For Alt-A Straight-Line (SL) Method (Classical Method) SL=Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. c. ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life A B $10,000 $15,000 $20,000 9,000 5,000 3.000 10,000 6,000 4,000 1.000 1.000 2.000 8 8 8 EOY[k] RS AS-BTCF (1+1) Inflation Depreciation Macrs-GDS Taxable Income TAX - 40*TI AS ATCF BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in RS 2.Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the inflation (2%) to obtain Real Dollars.. Tax rate 38% MARR = 8% Assume actual cash flows are in actual dollars (AS) base-o) RS = AS, (P/F./.k-b) - ASG