Question: Refer to Problem 6-79. The alternatives all have a MACRS (GDS) property class of three years. If the effective income tax rate is 40% and

Refer to Problem 6-79. The alternatives all have a MACRS (GDS) property class of three years. If the effective income tax rate is 40% and the after-tax MARR = (1 - 0.4)(12%) = 7.2% per year, which alternative should be recommended? Is this the same recommendation you made when the alternatives were analyzed on a before-tax basis?

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