Consider the following two alternatives. Each alternative has a 10-year useful life and no salvage value. If the combined tax rate is 35%, calculate the annual straight-line depreciation and annual combined taxes for each alternative? if the MARR is 10%, which alternative is preferred? Answer in terms of incremental rate of return analysis

Cash Flow Initial cost Annual Operating Revenue Annual Operating Expenses Straight-line Depreciation Annual Combined Taxes -$6,000 $2,000 -$1,000 -$9,000 $3,000 -$1,500 B-A -$3,000 $1,000 -$500