PLEASE USE HAND CALUCLATION. NO EXCEL.

4. A firm must choose between two projects A and B, shown below. Their effective income tax rate is 37% and both projects are depreciated using a MACRS GDS recovery period (Table 7-3) of 5 years and have useful lives of 6 years. If the before tax MARR is 19%, select the better project using after-tax analysis. Project A Capital investment $100,000 Market value at end of use- $40,000 ful life Project B $150,000 $60,000 Annual revenues $50,000 $50,000 Annual expenses $20,000 $10,000 4. A firm must choose between two projects A and B, shown below. Their effective income tax rate is 37% and both projects are depreciated using a MACRS GDS recovery period (Table 7-3) of 5 years and have useful lives of 6 years. If the before tax MARR is 19%, select the better project using after-tax analysis. Project A Capital investment $100,000 Market value at end of use- $40,000 ful life Project B $150,000 $60,000 Annual revenues $50,000 $50,000 Annual expenses $20,000 $10,000