Question: 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
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. Alt. A Alt.B Basis, $ 150,000 225,000 Gross Income 100,000 100,000 (GI), $ Operating 30,000 10,000 Expense (OE), $ Salvage Value, 15,000 22,500 $ MARCS 5 5 Recovery, Years The book value (BV) of Alt. B at the end of year 3 is between $40,000-$45,000. True False
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