Chapter $7$ ATCF

$3.$ A company has and effective income Tax Rate of $38\%.$ The company must choose one of the following exclusive disinfection equipments. The after tax MARR is $6\%$ per year. Which alternatives should be selected using : INCREMENTAL ANALYSIS $-$ ATCF$-$using PW

MARR $=6\%,$ Tax $=38\%$

$\backslash$table$[[$MARR $=6\%,$ Tax $=38\%,],[,$Alternative#$1,$Alternative#$2],[$Capital investment,$15,000,30,000],[$Annual Net Revenues,$3,000,9,000],[$Salvage Value,$2000,3,000],[$Useful life,$4,4],[$Depreciation Method,$\backslash$table$[[$MACRS$-$SL$-$ADS $3],[$recovery period$]],\backslash$table$[[$MACRS$-$GDS $3],[$recovery period.$]]]]$

Chapter $7$ ATCF

Problema#$3$

ALT#$1$

$\backslash$table$[[,$A$,$B$,$C$=$A$-$B$,$D$=-$tax$[$C$],E=A+$D

note: MACRS$-$GDS $3$ recovery period rates are:

$1=\mathrm{.}3333$

$2=\mathrm{.}4445$

$3=\mathrm{.}1481$

$4=\mathrm{.}0741$