Question
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
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 $2,500 at that time. The annual cost of use and maintenance will be $6,000. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $29,000, with use and maintenance costs of only $8,500 and salvage value after 6 years of $4,000. The marginal tax rate is 25%, and MARR is an after-tax 12%. A-Determine which alternative is less costly, based upon comparison of after-tax annual worth. select an alternative : Alternative 1Alternative 2 b-Show the AW values used to make your decision: Alternative 1: _____ $enter a dollar amount Alternative 2:______ $enter a dollar amount
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