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AAA Trucking in Sydney, Australia uses the following: before-tax MARR = 14% per year, after-tax MARR = 7% per year, and T e = 50%.
AAA Trucking in Sydney, Australia uses the following: before-tax MARR = 14% per year, after-tax MARR = 7% per year, and Te = 50%. Two new spray machine options have the following estimates and will generate the same GI each year.
Machine | A | B |
---|---|---|
First Cost, $ | 15,000 | 24000 |
Salvage Value, $ | 3,000 | 5,000 |
AOC, $ per Year | 3200 | 1600 |
Life, Years | 10 | 10 |
Perform after-tax PW analysis using MACRS depreciation with a 5-year recovery period using a spreadsheet. Assume the machines will be retained for 10 years and then sold at the estimated salvage values. (Please upload your response/solution using the controls below.)
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