Question: Create on Excel Work with the rest and do not include the depreciation part. 3. You have been selected to evaluate the following mutually exclusive
3. You have been selected to evaluate the following mutually exclusive investment alternatives (BTCF) Prepare the tables and evaluate the Mutually Exclusive Alternatives, ATCF using PW(6%). And select the preferred alternative. MARR=6% per year. Use tax=40% a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. $10,000 3,600 600 1,000 Capital Investment Annual Revenues Annual Cost Market Value at end of useful life. Useful life (years) $15,000 5.900 900 1,300 $20,000 6.500 1,000 2.200 10 10 10 (E)=(A)+(D) (A) EOY[k] - BTCF (B) depreciation (C)=(A)-(B) (D=-(C) Taxable Income Tax= -40TI ATCF 2-10 10 3. You have been selected to evaluate the following mutually exclusive investment alternatives (BTCF) Prepare the tables and evaluate the Mutually Exclusive Alternatives, ATCF using PW(6%). And select the preferred alternative. MARR=6% per year. Use tax=40% a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. $10,000 3,600 600 1,000 Capital Investment Annual Revenues Annual Cost Market Value at end of useful life. Useful life (years) $15,000 5.900 900 1,300 $20,000 6.500 1,000 2.200 10 10 10 (E)=(A)+(D) (A) EOY[k] - BTCF (B) depreciation (C)=(A)-(B) (D=-(C) Taxable Income Tax= -40TI ATCF 2-10 10
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