Problem 17.051: Calculate the after-tax PW of two alternatives Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te= 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative First Cost, $ Salvage Value, Year 4, S GI-OE, S per Year Recovery Period, Years 8,000 -13,000 2,000 5,000 3,500 3 (3 The PW for alternative X is determined to be $ The PW for alternative Y is determined to be S Alternative (Click to select) is selected
Problem 17.051: Calculate the after-tax PW of two alternatives Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te= 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative First Cost, $ Salvage Value, Year 4, S GI-OE, S per Year Recovery Period, Years 8,000 -13,000 2,000 5,000 3,500 3 (3 The PW for alternative X is determined to be $ The PW for alternative Y is determined to be S Alternative (Click to select) is selected
Chapter1: Making Economics Decisions
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![Problem 17.051: Calculate the after-tax PW of two alternatives
Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet The after-tax minimum acceptable
rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te= 40%. The (GI
- OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.
Alternative
First Cost, $
Salvage Value, Year 4, S
GI-OE, $ per Year
8,000
-13,000
2,000
5,000
3,500
Recovery Period, Years
(3
3
The PW for alternative X is determined to be $
The PW for alternative Y is determined to be S
Alternative (Click to select) is selected](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc136af68-c4ec-430e-98dd-dc3945185447%2F3ed9f296-2d80-484f-8673-5c4875e041e3%2Fiojaeom_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 17.051: Calculate the after-tax PW of two alternatives
Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet The after-tax minimum acceptable
rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te= 40%. The (GI
- OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.
Alternative
First Cost, $
Salvage Value, Year 4, S
GI-OE, $ per Year
8,000
-13,000
2,000
5,000
3,500
Recovery Period, Years
(3
3
The PW for alternative X is determined to be $
The PW for alternative Y is determined to be S
Alternative (Click to select) is selected
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