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7) Use the after-tax cash flows to evaluate the following three alteratives using the NPV method. All the alternatives have the same useful life, 10

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7) Use the after-tax cash flows to evaluate the following three alteratives using the NPV method. All the alternatives have the same useful life, 10 years. The MARR is 7% and the firm has a flat tax rate of 21%. Clearly state which option should be selected and rank them accordingly. Alternatives First Cost Annual Costs Annual Benefits Dep. Method A $15,000 $750 $3,500 SL $20,000 $820 $4,750 SOYD $18,000 $1,000 $5,625 MACRS (7-yr) B

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