Question: Two possible alternatives that they are mutually exclusive. Alternative A1 and A2 differ only in the method of depreciation used in the calculation of after
Two possible alternatives that they are mutually exclusive. Alternative A1 and A2 differ only in the method of depreciation used in the calculation of after tax cash flows. The alternative a1 requires sum-of-year digits depreciation and alternative 2 uses the straight line method. He lives of these two alternatives are 5 year and the estimated salvage value is zero. The effective rate is 40% and the MARR after tax is considered 10%. The before-tax cash flows for these two alternatives are. Select the best option
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