Question: View Policies Current Attempt in Progress Please view the following video before answering this question. Video Solution: 09.02-PR019 A portable concrete test instrument used in

 View Policies Current Attempt in Progress Please view the following video

View Policies Current Attempt in Progress Please view the following video before answering this question. Video Solution: 09.02-PR019 A portable concrete test instrument used in construction for evaluating and profiling concrete surfaces (MACRS-GDS 5-year property class) is under consideration by a construction form for $23,000. The instrument will be used for 6 years and be worth $2,750 at that time. The annual cost of use and maintenance will be $6,000. Alternatively, a more automated instrument (same property class) available from the manufacturer costs $26,000, with use and maintenance costs of only $5,500 and salvage value after 6 years of $2,500. The marginal tax rate is 25%, and MARR is an after-tax 12%. Determine which alternative is less costly, based upon comparison of after-tax annual worth. Show the AW values used to make your decision: Alternative 1: $ Alternative 2:$

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