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Posted on Aug 01, 2024

1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (-3%). Tax rate 40% MARR-10% Assume actual cash flows

1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (-3%). Tax rate 40% MARR-10% Assume actual cash flows are in real dollars (RS) (base) AS, - RS,(F/P.f.k -b) - R$, (1+-> b. Depreciation method For Alt-A Straight-Line (SL) Method (Classical Method) SL-(Investment-SV)/N 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 AS cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. C (5000) RS Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV) Useful life 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] AS-BTCF RS BTCF Depreciation Macrs-GDS Taxable Income TAX - 40TI AS ATCE Inflation 0 1-8 8 REMOVER INFLACION (AS a RS) 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-0) R. - AS,(P/F.S.k - b) = AS, -) Depreciation method For Alt-A Straight-Line (SL) Method (Classical Method) SL (Investment-SV)/N For Alt-B MACRS GDS 7 years recovery period. For Alt-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using RS cash flows, them evaluate all alteratives on ATCF using incremental analysis PW. (5000) AS B C Capital Investment $20,000 $25,000 $40,000 Annual Expenses 10,000 5,000 2.000 Annual Revenues 12,000 8,000 6,000 Market Value (MV or SV)) 2,000 2,000 5.000 Useful life 10 10 10 Usari para cmputo de PW en ATCF parte 2 I 1+ EOY[K] AS Depreciation Taxable TAX AS (1/(1+0'k RS BTCF Mars-GDS Income - 38*TI ATCF ATCE 0 1-10 10 En ambos casos se requiere INCREMENTAL ANALYSIS ATCF Incremental Analysis ATCF-A ATCF-B ATCF-C A/B-A) AC -?) APWA(MARR%)-??? 1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (-3%). Tax rate 40% MARR-10% Assume actual cash flows are in real dollars (RS) (base) AS, - RS,(F/P.f.k -b) - R$, (1+-> b. Depreciation method For Alt-A Straight-Line (SL) Method (Classical Method) SL-(Investment-SV)/N 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 AS cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. C (5000) RS Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV) Useful life 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] AS-BTCF RS BTCF Depreciation Macrs-GDS Taxable Income TAX - 40TI AS ATCE Inflation 0 1-8 8 REMOVER INFLACION (AS a RS) 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-0) R. - AS,(P/F.S.k - b) = AS, -) Depreciation method For Alt-A Straight-Line (SL) Method (Classical Method) SL (Investment-SV)/N For Alt-B MACRS GDS 7 years recovery period. For Alt-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using RS cash flows, them evaluate all alteratives on ATCF using incremental analysis PW. (5000) AS B C Capital Investment $20,000 $25,000 $40,000 Annual Expenses 10,000 5,000 2.000 Annual Revenues 12,000 8,000 6,000 Market Value (MV or SV)) 2,000 2,000 5.000 Useful life 10 10 10 Usari para cmputo de PW en ATCF parte 2 I 1+ EOY[K] AS Depreciation Taxable TAX AS (1/(1+0'k RS BTCF Mars-GDS Income - 38*TI ATCF ATCE 0 1-10 10 En ambos casos se requiere INCREMENTAL ANALYSIS ATCF Incremental Analysis ATCF-A ATCF-B ATCF-C A/B-A) AC -?) APWA(MARR%)