I want these B/C; after tax analysis to be computed Compare between the following two (After Tax cash flow) machines using internal rate of returnanalysis, present worth analysis, and annual worth analysis: B/C; after tax analysisMachine (A)Machine (B)First Cost ($)80,000200,000Life (years)510Annual Cost ($)18,0006,000Salvage value (S)20,00040,000Depreciation methodSLSLTax Rate (%)3030After tax MARR (%)1010Inflation5%5%

Given that, There are two machines A and B Machine (A) Machine (B) First Cost ($) 80,000…

Machine (A) Machine (B) First Cost ($) 80,000 200,000 Life (years) 5 10 Annual Cost ($) 18,000 6,000 Salvage value (S) 20,000 40,000 Depreciation method SL SL Tax Rate (%) 30 30 After tax MARR (%) 10 10 Inflation 5% 5%

Machine (A) Machine (B) First Cost ($) 80,000 200,000 Life (years) 5 10 Annual Cost ($) 18,000 6,000 Salvage value (S) 20,000 40,000 Depreciation method SL SL Tax Rate (%) 30 30 After tax MARR (%) 10 10 Inflation 5% 5%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

I want these B/C; after tax analysis to be computed

Compare between the following two (After Tax cash flow) machines using internal rate of return
analysis, present worth analysis, and annual worth analysis: B/C; after tax analysis
Machine (A)
Machine (B)
First Cost ($)
80,000
200,000
Life (years)
5
10
Annual Cost ($)
18,000
6,000
Salvage value (S)
20,000
40,000
Depreciation method
SL
SL
Tax Rate (%)
30
30
After tax MARR (%)
10
10
Inflation
5%
5%

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