a. Create a choice table for the two alternatives for interest rates ranging from 0-50% based on the before-tax cash flow.

b. Determine the after-tax cash flow for each alternative if the combined tax rate is 41%.

Notes: ¹Resale (or salvage value) is not considered taxable income. ²Income taxes for a given year will be negative (i.e., credit) if the taxable income is less than the depreciation charges.

c. Determine the most economically attractive alternative based on the after-tax cash flow with a MARR of 18%.