DON'T USE EXCELL. USE THE WRITTEN PROCESS

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 tax= 38% MARR=6% Alternative#1 12,000 3,000 2000 Capital investment Annual Net Revenues Salvage Value Useful life Alternative#2 30,000 9,000 3,000 5 MACRS-GDS 3 recovery period. 5 Depreciation Method MACRS-SL-ADS 3 recovery period