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please show details and work 7) Use the after-tax cash flows to evaluate the following three alternatives using the NPV method. All the alternatives have

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7) Use the after-tax cash flows to evaluate the following three alternatives using the NPV method. All the alternatives have the same useful life, 10 years. The MARR is 7% and the firm has a flat tax rate of 21%. Clearly state which option should be selected and rank them accordingly. Alternatives First Cost Annual Costs Annual Dep. Method Benefits A $15,000 $750 $3,500 SL B $20,000 $820 $4,750 SOYD C $18,000 $1,000 $5,625 MACRS (7-yr) 2017 Tax Bracket Taxable income Tax Rate Corporate Income Tax Not over $50,000 15% 15% over $0 $50,000-75,000 25% $7,500 + 25% over $50,000 $75,000-100,000 34% $13,750 + 34% over $75,000 $100,000-335,000 39% $22,250 + 39% over $100,000 $335,000-10 M 34% $113,900 + 34% over $335,000 $10 M-15 M 35% $3,400,000 + 35% over $10 mil. $15 M -18,333,333 M 38% $5,150,000+ 38% over $15 mil. over $18,333,333 M 35% Flat rate at 35% After the Tax and Cut Jobs Act (TCJA) taxes changed and now the corporate tax rate is a flat 21% for all firms

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