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 (GI), $ 100,000 100,000 Operating Expense (OE), $ 30,000 10,000 Salvage Value, $ 15,000 22.500 MARCS Recovery. Years 5 5 The CFAT at the end of year 5 for Alt. A is greater than $50,000. O True O 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 (GI). $ 100,000 100,000 Operating Expense (OE). $ 30,000 10,000 Salvage Value, $ 15,000 22.500 MARCS Recovery. Years 5 5 The CFAT at the end of year 2 for Alt. A is between $60,000-$65,000. True False
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