For questions 1-6, consider the problem below. Choose the letter of the correct answer. If the answer is not in the choices, write the word "None" and your answer beside it. TJ Store is considering the following mutually exclusive alternatives: Initial Cost Annual Revenues Annual Cost Salvage Value Economic life Depreciation Method SEC 650,000 215,000 40,000 130,000 5 yrs TRY 950,000 320,000 70,000 210,000 5 yrs DDB DDB The effective income tax rate is 40%, tax rate of 35% on capital gains, and the after- tax MARR is 10%. All values are in pesos. 1. Calculate the value of the before-tax MARR. a.) 16.67% b.) 15.38% c.) 14% d.) 6% 2. What is the depreciation of alternative SEC at year 5? a.) Php. 156,000 C.) Php. 56,160 b.) Php. 93,600 d.) Php. 33,696 3. What is the accumulated depreciation of alternative TRY at year 3? a.) Php. 744,800 c.) Php. 380,000 b.) Php. 608,000 d.) Php. 136,800 4. What is the internal rate of return of alternative TRY? a.) 10.58% c.) 10.01% b.) 10.40% d.) 9.91% 5. The internal rate of return of alternative SEC is nearest to a.) 10.58% c.) 10.01% b.) 10.40% d.) 9.91% 6. Which alternative should you choose? a.) Alternative SEC b.) Alternative TRY c.) Either are profitable d.) Neither