Question: 7 - 3 4 . Refer to Problem 6 - 7 7 . The alternatives all have a MACRS ( GDS ) property class of

7-34. Refer to Problem 6-77. The alternatives all have a MACRS (GDS) property class of three years. If the effective income tax rate is 25% and the after-tax MARR =11.25% per year, which alternative should be recommended? Is this the same recommendation you made when the alternatives were analyzed on a before-tax basis? (7.10)
6-77. Complete the following analysis of investment alternatives and select the preferred alternative. The study period is three years and the MARR =15% per year. (6.4)
\table[[,Alternative A,Alternative B,Alternative C],[Capital investment,$11,000,$16,000,$13,000],[Annual revenues,4,000,6,000,5,540],[Annual costs,250,500,400],[Market value at EOY 3,5,000,6,150,2,800],[PW(15%),850,???,577]]
(a) Do nothing
(b) Alternative A
(c) Alternative B
(d) Alternative C
7 - 3 4 . Refer to Problem 6 - 7 7 . The

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