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Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Alt. A 150,000 100,000 30,000 Alt.B 225,,000 100,000 10.000

Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Alt. A 150,000 100,000 30,000 Alt.B 225,,000 100,000 10.000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 6 Pertinent information for two alternatives A and B is shown below. If i=10%/ year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True Alt. A 150,000 100,000 False 30,000 15,000 5 Alt.B 225,,000 100,000 10,000 The CFAT at the end of year 3 for Alt. B is between $60,000-$65,000. 22,500 5
Transcribed Image Text:Question 6 Pertinent information for two alternatives A and B is shown below. If i=10%/ year and the effective income tax rate is 35%, answer the following true/false questions. Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years True Alt. A 150,000 100,000 False 30,000 15,000 5 Alt.B 225,,000 100,000 10,000 The CFAT at the end of year 3 for Alt. B is between $60,000-$65,000. 22,500 5
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