$1.$Select the preferred alternative using ATCF$-$Present$-$Worth$($PW$)$ and using Incremental Analysis Method.

After recognition of Inflation. $)=(3\%.$ Tax rate $40\%,$MARR$=10\%$

a Assume actual cash flows are in real dollars $(R$$$)$ base$=0),A$$${?}_k=R$$${?}_k(\frac{F}{P},f,k-b)=R$$${?}_k(1+f{)}^{(k-b)}$

Depreciation method

a$.$ For Alt$-$A Straight$-$Line $($SL$)$ Method $($Classical Method$)$ SL$=($Investment$-$SV$)/$ N

b$.$ For Alt$-$B MACRS GDS $5$ years recovery period.

c$.$ For Alt$-$C MACRS$-$ADS $5$ years recovery period.

Find the ATCF for the alternatives using $A$$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW$.$

$\backslash$table$[[($$$000)$ R $$,$A$,$B$,$C$],[$Capital Investment,$$10,000,$$$15,000,$$$20,000$