Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
help A portable concrete test instrument used in construction for evatuating and profiling concrete surfaces (MACRS-GDS 5-year property. class) is under consideration by a conatruction
help A portable concrete test instrument used in construction for evatuating and profiling concrete surfaces (MACRS-GDS 5-year property. class) is under consideration by a conatruction firm for $18.500. The instrument will be used for 6 years and be worth 51,000 at that time. The annual cost of use and maintenance will be 56,500 . Alternatively, a more automated instrument (same property class) tavallable from the manufacturer costs $31.000, with use and maintenance costs of only $9.500 and satvage value after 6 years of 53.500. The marginal tax rate is 25% and MARR is an after-tax 12% Determine which alternative is less costly, based upon comparison of alter-tax annual worth. Show the AW values used to make your decision: Alternative 1:5 Alternative 2:5 Carry all interim colculations to 5 decimal ploces and then round your final ansmer to the nearest dolfar. The tolerance is 10. Click here to access the TVM Factor Table Caloulator Click here to access the MACRS-GDS table. eTextbook and Media
help
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started