Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Remove Inflation (A$ to R$) ATCF in R$ 2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the Inflation. -2%)

image text in transcribed

Remove Inflation (A$ to R$) ATCF in R$ 2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the Inflation. -2%) to obtain Real Dollars.. Tax rate 38% MARR-8% Assume actual cash flows are in actual dollars (A$base) Depreciation method For Al-A Straight-Line (SL) Method (Classical Method) SL-Investment-SV)/N For All-B MACRS GDS 7 years recovery period. For A-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using R$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. (5000) AS Capital Investment $20.000 $25.000 $40.000 Annual Expenses 10,000 5.000 2,000 Annual Revenues 12.000 8.000 6.000 Market Value (MV or SVO 2.000 2.000 5.000 Useful life 10 10 10 Usar para computo de PW en ATCF parte 2 | AS-BTCF Depreciation TAX AS (1/1) R$ Taxable Income Macrs-GOS -38'TI ATCF ATCF 0 1-10 10 Incremental Analysis ATCF-A ATCF-B ATCF-C A(B-A) A(2-?) APWB-A(MARR%)=??? Remove Inflation (A$ to R$) ATCF in R$ 2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the Inflation. -2%) to obtain Real Dollars.. Tax rate 38% MARR-8% Assume actual cash flows are in actual dollars (A$base) Depreciation method For Al-A Straight-Line (SL) Method (Classical Method) SL-Investment-SV)/N For All-B MACRS GDS 7 years recovery period. For A-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using R$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. (5000) AS Capital Investment $20.000 $25.000 $40.000 Annual Expenses 10,000 5.000 2,000 Annual Revenues 12.000 8.000 6.000 Market Value (MV or SVO 2.000 2.000 5.000 Useful life 10 10 10 Usar para computo de PW en ATCF parte 2 | AS-BTCF Depreciation TAX AS (1/1) R$ Taxable Income Macrs-GOS -38'TI ATCF ATCF 0 1-10 10 Incremental Analysis ATCF-A ATCF-B ATCF-C A(B-A) A(2-?) APWB-A(MARR%)=

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions