Question
Following is a table of mutually exclusive alternatives. The planning horizon is 6 years, the cash-flow streams are in after-tax terms, and the after-tax MARR
Following is a table of mutually exclusive alternatives. The planning horizon is 6 years, the cash-flow streams are in after-tax terms, and the after-tax MARR is 12%
|
| A0 | A1 | A2 | A6 | A8 | A9 | A10 | A14 |
| Investment | $0 | $200k | $750k | $950k | $450k | $650k | $1200k | $1400k |
| Annual Revenue | $0 | $250k | $500k | $560k | $200k | $450k | $700k | $760k |
| Annual Cost | $0 | $50k | $20k | $30k | $40k | $90k | $60k | $70k |
| Salvage Value | $0 | $0 | $0 | $0 | $50k | $50k | $50k | $50k |
(6) In what order should these alternatives be compared?
(6) Compare and contrast the techniques used to determine the economic life of an asset whose lifespan is (1) longer and (2) shorter than the planning horizon.
(6) Provide a one-page maximum analysis in which a fictional firm is evaluating a replacement or retirement decision on a software asset. Reference the various formulae and analyses that would be involved in such a decision.
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
