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3 A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS S-vear property class) is under consideration by a construction
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A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS S-vear property class) is under consideration by a construction firm for $25,000. The instrument wil be used for 6 years and be worth $2,750 at that time. The annual cost of use and maintenance will be $10,000. Alternatively, a more automated instrument (same property class). available from the manufacturer costs $30,000, with use and maintenance costs of only $7,000 and salvage value after 6 years of $4,000. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 1:\$ Alternative 2:5 Carry all interim colculotions to 5 decimal ploces and then round your final answer to the nearest dollar. The folerance is 10 Step by Step Solution
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