Add inflation (R$ to A$) ATCF in A$

Incremental Analysis ATCF-A ATCF-B ATCF-C A(B-A) A(2-?) APWB-A(MARR%)=??? 1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation . (f = 3%). Tax rate 40% MARR= 10% Assume actual cash flows are in real dollars (R$) )(base=0) Depreciation method a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. a. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. ($000) R$ A B Capital Investment $10,000 $15,000 $20,000 Annual Expenses 9,000 5,000 3,000 Annual Revenues 10,000 6,000 4,000 Market Value (MV or SV)) 1,000 1,000 2,000 Useful life 8 8 8 EOY[K] R$ (1+f34k A$-BTCF Depreciation TAX AS Taxable Income BTCF Inflation Macrs-GDS -.40'TI ATCF 0 1-8 8