Question: Pertinent information for two alternatives A and B is shown below. If i = 1 0 % / year and the effective income tax rate

Pertinent information for two alternatives A and B is shown below. If i=10%/year and the effective income tax rate is 35%, answer the following true/false questions.
\table[[Alt. A,Alt.B,],[Basis, $,150,000,225,000],[Gros Income (GI), $,100,000,100,000],[\table[[Operating Expense],[(OE), $]],30,000,10,000],[Salvage Value, $,15,000,22,500],[\table[[MARCS Depreciation],[Method]],\table[[ADS-6: Years Recovery],[Period]],\table[[GDS: 5-Years Recovery],[Period]]]]
The CFAT at the end of year 5 for Alt. A is greater than $60,000.
 Pertinent information for two alternatives A and B is shown below.

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