Question: Question 6 (25 points) Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 10% per year, MACRS depreciation applies (MACRS rate
Question 6 (25 points) Perform a PW-based evaluation of the two alternatives below. The after-tax MARR is 10% per year, MACRS depreciation applies (MACRS rate for year 1 is 0.3333, year 2 is 0.4445. year 3 is 0.1481), and T. = 40%. The (GI-OE) estimate is made for the first 3 years and is zero in year 4. Assume the two alternatives are sold at the estimated salvage values in year 4. -8,500 Alternative First cost, $ Salvage value, year 4, S GI - OE, $ per year Recovery period, years -13,500 2,500 5,500 4,000
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