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Chapter 7 ATCE 3. A Biotech company has and effective income tax rate of 40%. The company must choose one of the following exclusive cryogenic

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Chapter 7 ATCE 3. A Biotech company has and effective income tax rate of 40%. The company must choose one of the following exclusive cryogenic freezers for its tissue samples. The after tax MARR is 12% per year. Which freezer should be selected using PW-ATCF- INCREMENTAL ANALYSIS. Capital investment Annual Benefit SV Useful life tax=40% MARR=12% Freezer 1 10,000 3,000 2000 5 Freezer 2 30,000 9,000 0 5 MACRS-SL-ADS 3 recovery period MACRS-GDS 3 recovery period. Depre. Method Chapter 7 ATCE 3. A Biotech company has and effective income tax rate of 40%. The company must choose one of the following exclusive cryogenic freezers for its tissue samples. The after tax MARR is 12% per year. Which freezer should be selected using PW-ATCF- INCREMENTAL ANALYSIS. Capital investment Annual Benefit SV Useful life tax=40% MARR=12% Freezer 1 10,000 3,000 2000 5 Freezer 2 30,000 9,000 0 5 MACRS-SL-ADS 3 recovery period MACRS-GDS 3 recovery period. Depre. Method

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