Question: in excel c. 1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (-3%). Tax rate 40% MARR 10%
in excelc. 1. Select the preferred alternative using ATCF-Present-Worth(PW) and using Incremental Analysis Method. After recognition of Inflation (-3%). Tax rate 40% MARR 10% Assume actual cash flows are in real collacs (R) Whase) AS, = R$,(FIP.S.k-b) = R$ 0+ ** Depreciation method a For Alt-A Straight-Line (SL) Method (Classical Method) SL-(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using AS cash flows, them evaluate all alternatives on ATCF using incremental analysis PW. (5000) RS A Capital Investment $10,000 $15,000 $20,000 Annual Expenses 9,000 5,000 3,000 Annual Revenues 10.000 6,000 4,000 Market Value (MV or SV) 1.000 1,000 2,000 Useful life 8 8 8 a EOY[k] AS-BTCF RS BTCF (1+) Inflation Depreciation Macrs-GDS Taxable Income TAX -40TI AS ATCF 0 1-8 8 REMOVER INFLACION (AS a RS) ATCF in RS
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