A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction firm for $24,500. The instrument will be used for 6 years and be worth $2,500 at that time. The annual cost of use and maintenance will be $7,000. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $30,500, with use and maintenance costs of only $5,500 and salvage value after 6 years of $3,000. The marginal tax rate is 25%, and MARR is an after-tax 12%.

Your answer is partially correct. Please view the following video before answering this question. Video Solution: 09.02-PR019 A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction form for $24,500. The instrument will be used for 6 years and be worth $2,500 at that time. The annual cost of use and maintenance will be $7,000. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $30,500, with use and maintenance costs of only $5,500 and salvage value after 6 years of $3,000. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Alternative 1 Show the AW values used to make your decision: Alternative 1: $ -8112 Alternative 2: $ -10597 Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is 10. Click here to access the TVM Factor Table Calculator Click here to access the MACRS-GDS table. e Textbook and Media