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The book says the answer is PW A is $234,000 higher 12-70 Two mutually exclusive alternatives are being considered by a profitable corporation with an

The book says the answer is PW A is $234,000 higher

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12-70 Two mutually exclusive alternatives are being considered by a profitable corporation with an million. annual taxable income between $5 million and $10 Before-Tax Cash Flow ($1,000) Year Alt. A Alt. B -$3000 -$5000 1 1000 1000 2 1000 1200 3 1000 1400 4 1000 2600 1000 2800 Both alternatives have a 5-year useful and deprecia- ble life and no salvage value. Alternative A would be depreciated by sum-of-years'-digits deprecia- tion, and Alt. B by straight-line depreciation. If the MARR is 10% after taxes, which alternative should be selected

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