It is the new year equipment review time and New Builders Inc. needs one new skidder to upgrade their fleet. The following costs are associated for each of three good choices. The contractor's MARR is 18% per year and all skidders are expected to have useful life of 8 years. The company uses the MARCS GDS with a class life of n=7 years for all skidders. The effective tax rate is 34%. Use the Incremental ROR Analysis on the CFAT to decide which one to purchase. One skidder must be purchased. Use 8 years for the analysis so that all depreciation is accounted for. Assets sold at salvage value at the end of the 8th yea

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