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MARR Analysis Period 9% 10 Capital Cost Revenue Maintenance Operations Salvage Useful Life Alternative A B $ 409,000 $ 322,000 $ 616,000 $ 98,000 $

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MARR Analysis Period 9% 10 Capital Cost Revenue Maintenance Operations Salvage Useful Life Alternative A B $ 409,000 $ 322,000 $ 616,000 $ 98,000 $ 78,000 $ 103,000 $ 3,000 $5,000 $ 6,000 $5,000 $5,000 $ 6,000 $ 46,000 $ 366,000 $ 310,000 10 17 16 1. Find the best alternative based on BTCF and the incremental ROR. (20 points) 2. Find the ATCF for that alternative for all years based on DDB depreciation and Federal Corporate Tax Rate only. (20 points) Be sure to include: 1. Depreciation for all years. 2. Anticipated Taxable income for all years. 3. Anticipated Income Tax for all years. 3. If the company sells the wall for $50,000 in year 3 what would be the tax implications? (10 points) MARR Analysis Period 9% 10 Capital Cost Revenue Maintenance Operations Salvage Useful Life Alternative A B $ 409,000 $ 322,000 $ 616,000 $ 98,000 $ 78,000 $ 103,000 $ 3,000 $5,000 $ 6,000 $5,000 $5,000 $ 6,000 $ 46,000 $ 366,000 $ 310,000 10 17 16 1. Find the best alternative based on BTCF and the incremental ROR. (20 points) 2. Find the ATCF for that alternative for all years based on DDB depreciation and Federal Corporate Tax Rate only. (20 points) Be sure to include: 1. Depreciation for all years. 2. Anticipated Taxable income for all years. 3. Anticipated Income Tax for all years. 3. If the company sells the wall for $50,000 in year 3 what would be the tax implications? (10 points)

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