7-43. Alternative Methods I and II are proposed for a security operation. The following is comparative...

 

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7-43. Alternative Methods I and II are proposed for a security operation. The following is comparative information: Method / Method II Initial investment $10,000 5 years $1,000 $14,500 $40,000 10 years $5,000 Useful (ADR) life Terminal market value Annual expenses $7,000 Determine which is the better alternative based on an after-tax annual cost analysis with an effective income tax rate of 40% and an after-tax MARR of 15%, assuming the following methods of depreciation: (7.9) 7-43 a. SL-Classical Method b. MACRS-ADS-4 years recovery period a. SL ambos equipos. b. MACRS 7-43. Alternative Methods I and II are proposed for a security operation. The following is comparative information: Method / Method II Initial investment $10,000 5 years $1,000 $14,500 $40,000 10 years $5,000 Useful (ADR) life Terminal market value Annual expenses $7,000 Determine which is the better alternative based on an after-tax annual cost analysis with an effective income tax rate of 40% and an after-tax MARR of 15%, assuming the following methods of depreciation: (7.9) 7-43 a. SL-Classical Method b. MACRS-ADS-4 years recovery period a. SL ambos equipos. b. MACRS

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743 a Method I PW0 15 10000 7770PA155 1000PF155 3554939 To have a basis for computation assume that ... View the full answer