Do Not Solve with Excel. Show your work.

12-68 A corporation with $7 million in annual taxable A income is considering two alternatives: Year Alt. 2 0 1-10 11-20 Before-Tax Cash Flow ($1000) Alt. 1 -$10,000 -$20,000 4,500 4,500 4,500 om Both alternatives will be depreciated by straight-line depreciation assuming a 10-year depreciable life and no salvage value. Neither alter- native is to be replaced at the end of its useful life. If the corporation has a minimum attractive rate of return of 10% after taxes, which alternative should it choose? Solve the problem by: (a) Present worth analysis (b) Annual cash flow analysis (c) Rate of return analysis (d) Future worth analysis (e) Benefit-cost ratio analysis 12-68 A corporation with $7 million in annual taxable A income is considering two alternatives: Year Alt. 2 0 1-10 11-20 Before-Tax Cash Flow ($1000) Alt. 1 -$10,000 -$20,000 4,500 4,500 4,500 om Both alternatives will be depreciated by straight-line depreciation assuming a 10-year depreciable life and no salvage value. Neither alter- native is to be replaced at the end of its useful life. If the corporation has a minimum attractive rate of return of 10% after taxes, which alternative should it choose? Solve the problem by: (a) Present worth analysis (b) Annual cash flow analysis (c) Rate of return analysis (d) Future worth analysis (e) Benefit-cost ratio analysis