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 = 2%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) A$, = R$(F/P.f.k - b) = RS, (1+ Depreciation method: MACRS o For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV) /N O For Alt-B MACRS GDS 5 years recovery period. o For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. _ ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV) Useful life A $12 9 10 B $18 5 6 C $24 30 4 | I I I 10 10 10 1 Depreciation EOY[k] R$ BTCF (1+f)^K Inflation AS- BTCF Taxable Income TAX= - 40*TI A$ ATCF O 1-10 10 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 = 2%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) A$, = R$(F/P.f.k - b) = RS, (1+ Depreciation method: MACRS o For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV) /N O For Alt-B MACRS GDS 5 years recovery period. o For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. _ ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV) Useful life A $12 9 10 B $18 5 6 C $24 30 4 | I I I 10 10 10 1 Depreciation EOY[k] R$ BTCF (1+f)^K Inflation AS- BTCF Taxable Income TAX= - 40*TI A$ ATCF O 1-10 10