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 30,000 10,000 Operating Expense (OE), $ Salvage Value, $ 15,000 22,500 MARCS Recovery, Years The book value (BV) at the end of year 4 for Alt. A is greater than $30,000. True False
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