Calculate PWA, PWB, and PWC

Problem 7-34 (algorithmic) Question Help The Ford Motor Company is considering three mutually exclusive electronic stability control systems for protection against rollover of its automobiles. The investment period is four years (equal lives), and the MARR is 10% per year. Data for fixturing costs of the systems are given on the Alternative right. The alternatives all have a MACRS (GDS) property class of three years. If the effective income tax rate is 39% and the aftertax MARR (1-0.39)(10%) = 6.1% per year, which alternative should be recommended? Annual Receipts Capital Investment $12,800 $15,900 $7,300 Less Salvage IRR 18.8% 22.1% 19.7% Expenses $4,300 $5,700 $2,600 Value $2,800 $3,800 $1,100 Click the icon to view the GDS Recovery Rates (4) for the 3-year property class. Calculate the PW value for the alternative A. PWA(6.1%): (Round to the nearest dollar.)