AgriGrow can invest in a 100-day short-term project with similar cash flows to those in problem 23
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AgriGrow can invest in a 100-day short-term project with similar cash flows to those in problem 23 costing \($90,000\) to improve customer service. They believe the return on the project will be a net increase in sales of \($37,000\) per year over 3 years and of \($43,000\) in the fourth year. AgriGrow’s marginal tax rate is 40 percent, and MARR is 10 percent on the after-tax cash flows.
a. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR after 4 years.
b. Compare the results of Part a with those of Problem 23b, where MACRS-GDS is used. Explain the differences.
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Related Book For
Principles Of Engineering Economic Analysis
ISBN: 9781118163832
6th Edition
Authors: John A. White, Kenneth E. Case, David B. Pratt
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