Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

AADIR INFLACION (R$ a A$) ATCF in A$ 1. Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f =

image text in transcribed
AADIR INFLACION (R$ a A$) ATCF in A$ 1. Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f = 3%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) AS, = RS, (F/P.F,k-b) = RS. (1+345) Depreciation method a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using As cash flows them evaluate all alternatives on ATCF using incremental analysis PW. A $10 9 SO ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life B $15 5 6 1 8 o $20 3 4 2 8 1 8 (1+1)^k Inflation A$- BTCF Depreciation Taxable Macrs-GDS Income TAX A$ - 40'TI ATCF EOY[K] RS BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in R$ AADIR INFLACION (R$ a A$) ATCF in A$ 1. Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f = 3%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) AS, = RS, (F/P.F,k-b) = RS. (1+345) Depreciation method a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using As cash flows them evaluate all alternatives on ATCF using incremental analysis PW. A $10 9 SO ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life B $15 5 6 1 8 o $20 3 4 2 8 1 8 (1+1)^k Inflation A$- BTCF Depreciation Taxable Macrs-GDS Income TAX A$ - 40'TI ATCF EOY[K] RS BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in R$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Identify conflict triggers in yourself and others

Answered: 1 week ago