A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $20,000. The instrument will be used for 6 years and be worth $1,250 at that time. The annual cost of use and maintenance will be $9,500. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $26,500, with use and maintenance costs of only $8,500 and salvage value after 6 years of $3,500. The marginal tax rate is 40%, and MARR is an after-tax 12%.

Chapter 10, Problem 027 (video solution) l You answer is partially correct. Try again. A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS GDS 5-year property class) is under consideration by a construction finm for $20,000. The instrument will be used for 6 years and be worth $1,250 at that time. The annual cost of use and maintenance will be $9,500. Alternatively, a more automated instrument same property class) available from the manufacturer costs $26,500, with use and maintenance costs a of only $8,500 and salvage value after 6 years of $3,500. The marginal tax rate is 40%r and MARR is an after-tax 12%. Alternative 13 Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 9036 1: S... ......j 9384 Alternative 2: Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is t3%. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. click if you would like to show work for this question Open Show Work