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Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 8% per year, MACRS depreciation applies, and Te = 40%. The (GI
Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 8% per year, MACRS depreciation applies, and Te = 40%. The (GI - OE) estimate is made for the first three years; it is zero in year 4 when each asset is sold. Alternative Y First Cost. $ -8,000 -13,000 Salvage value, year 4, $ 0 0 GI OE, $ per year 3,500 5,000 Recovery period, years 3 3 GI = Gross Income OE = Operating Expense Construct the cash flow diagram. You may use the factor from the Table of Interest. Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 8% per year, MACRS depreciation applies, and Te = 40%. The (GI - OE) estimate is made for the first three years; it is zero in year 4 when each asset is sold. Alternative Y First Cost. $ -8,000 -13,000 Salvage value, year 4, $ 0 0 GI OE, $ per year 3,500 5,000 Recovery period, years 3 3 GI = Gross Income OE = Operating Expense Construct the cash flow diagram. You may use the factor from the Table of Interest
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