Question: Please show up all steps in Excel. 1.Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f= 2%) . Tax
1.Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f= 2%) . Tax rate 40% MARR ATCF-10% a Assume actual cash flows are in real dollars (RS) )(base-0) AS, RS,(F/P,f,k-b)-RS, (I+ /)" 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. c. For Alt-C MACRS-ADS 5 years recovery period Find the ATCF for the alternatives using A$ cash flows, them evaluate all alternatives on ATCF using incremental analysis PW (5000) RS Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV) Useful life $10 |$15 |$20 10 6 4 8 Depreciation Taxable TAX AS BTCF Inflation BTCF Macrs-GDS Income 40 TI ATCF 1-8 8
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