DogeMiner (DM) started to mine Dogecoin at the start of this year. They want to do an economic analysis to expand next year.

DM must profit from their investment by the end of year 10 . The company must choose a single alternative from one of 4 alternatives, i.e. do – nothing is not an option.

Standard Federal Corporate Tax Rate applies. Do not consider state or city taxes.

1. Find the best alternative based on the incremental rate of return.

Based on the alternative you identified as best above, identify the following for every year of the investment horizon.

2. The BTCF
3. The depreciation based on DDB

The anticipated Taxable Income

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1 2 3 Capital Cost (Equipment) 4 Land Cost 5 Revenue 6 Yearly Increase 7 Labor 8 Maintenance 9 Operations 10 Yearly Increase for all Cost 1 Salvage 2 Useful Life 23456 13 4 MARR A 15 17 B 20% с D $530,000 $200,000 $449,000 $3,000 $17,000 $2,000 $3,000 3% $42,000.00 15 D Alternative с $864,000 $200,000 $405,000 $5,000 $10,000 $68,000 $40,000 5% E 15 B $881,000 $200,000 $330,000 $1,000 $15,000 $79,000 $5,000 2% $59,000.00 $55,000.00 13 F A $953,000 $200,000 $728,000 $2,500 $15,000 $17,000 $24,500 5% $50,000.00 20 1 2 3 Capital Cost (Equipment) 4 Land Cost 5 Revenue 6 Yearly Increase 7 Labor 8 Maintenance 9 Operations 10 Yearly Increase for all Cost 1 Salvage 2 Useful Life 23456 13 4 MARR A 15 17 B 20% с D $530,000 $200,000 $449,000 $3,000 $17,000 $2,000 $3,000 3% $42,000.00 15 D Alternative с $864,000 $200,000 $405,000 $5,000 $10,000 $68,000 $40,000 5% E 15 B $881,000 $200,000 $330,000 $1,000 $15,000 $79,000 $5,000 2% $59,000.00 $55,000.00 13 F A $953,000 $200,000 $728,000 $2,500 $15,000 $17,000 $24,500 5% $50,000.00 20

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