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Pertinent information for two alternatives A and B is shown below. If i= 10%/vear and the effective income tax rate is 35%, answer the following

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Pertinent information for two alternatives A and B is shown below. If i= 10%/vear and the effective income tax rate is 35%, answer the following true/false questions. Alt. A Alt.B Basis, $ 150,000 225,000 Gross Income (GI), $ 100,000 30,000 100,000 10,000 Operating Expense (OE), $ Salvage Value, $ 15,000 22,500 MARCS Recovery, Years The Book Value at the end of year 6 for Alt. A is greater than $500 O True O False

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