ADD INFLATION (R $ to A S) ATCF in AS 1 Select the preferred altemative using ATCF Present Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (3%). Tax rats. 40% MARR 10% Assume actual cash flows are in real dollars (RS) Xbase0) AS, - RS,(F/P.8.1- b) - R$,(1+-- Depreciation method For Alt A Straight-Line (SL) Method (Classical Method) SL (Investment-SV) /N b. For Alt-B MACRS GDS 5 years recovery period. For Alt-C. MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using AS cash flows them evaluate all alteratives on ATCF using incremental analysis PW. C. (S000) RS Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life A B $10,000 $15,000 $20,000 9,000 3.000 3,000 10,000 6.000 4,000 1,000 1,000 2,000 8 8 8 EOY[k] AS-BTCF R$ BTCF (1+)k Inflation Depreciation Mars-GDS Taxable Income TAX 40-TI AS ATCE 1-8 8 3 REMOVE INFLATION (A S to RS) ATCF in RS ADD INFLATION (R $ to A S) ATCF in AS 1 Select the preferred altemative using ATCF Present Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (3%). Tax rats. 40% MARR 10% Assume actual cash flows are in real dollars (RS) Xbase0) AS, - RS,(F/P.8.1- b) - R$,(1+-- Depreciation method For Alt A Straight-Line (SL) Method (Classical Method) SL (Investment-SV) /N b. For Alt-B MACRS GDS 5 years recovery period. For Alt-C. MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using AS cash flows them evaluate all alteratives on ATCF using incremental analysis PW. C. (S000) RS Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life A B $10,000 $15,000 $20,000 9,000 3.000 3,000 10,000 6.000 4,000 1,000 1,000 2,000 8 8 8 EOY[k] AS-BTCF R$ BTCF (1+)k Inflation Depreciation Mars-GDS Taxable Income TAX 40-TI AS ATCE 1-8 8 3 REMOVE INFLATION (A S to RS) ATCF in RS