Question: 2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the inflation. (f = 2%) to obtain Real Dollars.. Tax rate

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

2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the inflation. (f = 2%) to obtain Real Dollars.. Tax rate 38% MARR = 8% Assume actual cash flows are in actual dollars (A$))(base=0) Depreciation method o For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N o For Alt-B MACRS GDS 7 years recovery period. o For Alt-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using R$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. ($000) A$ A B Capital Investment $20,000 $25,000 $40,000 Annual Expenses 10,000 5,000 2,000 Annual Revenues 12,000 8,000 6,000 Market Value (MV or SV)) 2,000 2,000 5,000 Useful life 10 10 10 Usar ir para cmputo de PW en ATCF parte 2 EOY[K] A$-BTCF Depreciation TAX A$ Taxable Income (1/(1+f))^ R$ Macrs-GDS -38'TI ATCF ATCF 0 1-10 10 2. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method after removing the inflation. (f = 2%) to obtain Real Dollars.. Tax rate 38% MARR = 8% Assume actual cash flows are in actual dollars (A$))(base=0) Depreciation method o For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N o For Alt-B MACRS GDS 7 years recovery period. o For Alt-C MACRS-ADS 7 years recovery period. Find the ATCF for the alternatives using R$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. ($000) A$ A B Capital Investment $20,000 $25,000 $40,000 Annual Expenses 10,000 5,000 2,000 Annual Revenues 12,000 8,000 6,000 Market Value (MV or SV)) 2,000 2,000 5,000 Useful life 10 10 10 Usar ir para cmputo de PW en ATCF parte 2 EOY[K] A$-BTCF Depreciation TAX A$ Taxable Income (1/(1+f))^ R$ Macrs-GDS -38'TI ATCF ATCF 0 1-10 10

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