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lease use a piece of paper to solve the problem and then choose the best answer. Question 4 3 pts Pertinent information for alternatives A
lease use a piece of paper to solve the problem and then choose the best answer. Question 4 3 pts Pertinent information for alternatives A and B is shown below if the after-tax MARR is 8% per year, and effective income tax rate-50%. Hint: Solve the problem in tabular format on a piece of paper and then answer 5 questions, each one at a time. Capital Investment Annual Operating Expenses Useful Life Market value Depreciation Method Alt. A $30,000 $3,000 6 years $6,000 SL to zero book value over 5 years Alt.B $40,000 $2,500 8 years $4,000 MACRS (GDS) with 5-year recovery period The AW of Alt. A is close to -$4990. True False Previous Next
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