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. Alt. A 150,000 100,000 30,000 15,000 5 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years The CFAT at the end of year 4 for Alt. A is less than $40,000. True O False Alt.B 225,000 100,000 10,000 22,500 5

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. Alt. A 150,000 100,000 30,000 15,000 5 Basis, $ Gross Income (GI), $ Operating Expense (OE), $ Salvage Value, $ MARCS Recovery, Years The CFAT at the end of year 4 for Alt. A is less than $40,000. True O False Alt.B 225,000 100,000 10,000 22,500 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

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.
Alt. A
150,000
100,000
30,000
15,000
5
Basis, $
Gross Income (GI), $
Operating Expense (OE), $
Salvage Value, $
MARCS Recovery, Years
The CFAT at the end of year 4 for Alt. A is less than $40,000.
True
False
Alt.B
225,000
100,000
10,000
22,500
5

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