Answer: incremental A-C 36.2%, incremental B-A 16.7%

need step by step solution (no excel please)

there is no cash inflow given except the salvage value

Use the after-tax IRR method to evaluate the following three alternatives for MACRS 3-year property, and offer a recommendation. The after- tax MARR is 25%, the project life is 5 years, and the firm has a combined incremental tax rate of 45% First Cost Annual Costs $2500 1000 5000 Salvage Value $ 5,000 10,000 0 Alt. A $14,000 18,000 10,000