Question: Consider the following cash flow. Determine by graphical method the rate of return on this cash flow. Consider the three mutually exclusive alternative investments for
Consider the following cash flow. Determine by graphical method the rate of return on this cash flow. Consider the three mutually exclusive alternative investments for a period of 50 years. Determine which investment is preferable by using incremental benefit-cost ratio analysis. You purchased a machinery for $230,000 which is a 7-year asset class. You sold it in the middle of the year 4 for $100,000. Calculate the capital gain or loss on this transaction. The MACRS percentages for this asset class are 14.29,24.49, 17.49, 12.49, 8.93. 8.92, 8.93, and 4.46 percent for years 1 to 8 respectively
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