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  1. business
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  3. 2) given the following two mutually exclusive alte

2) Given the following two mutually exclusive alternatives: Alternative A $60,000 3 years 5 years...

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Accounting

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2) Given the following two mutually exclusive alternatives: Alternative A $60,000 3 years 5 years Initial Cost Depreciable Life Economic Life Depreciation Method Net Revenues/Year Market Value at the end of economic Life Effective Income Tax Rate After Tax MARR Alternative B $80,000 3 years 5 years MACRS $20,000 $25,000 MACRS $10,000 $10,000 21% 12% 12% a) Draw a table with these columns: Before tax cash flow, Depreciation, Taxable Income, Income Tax and after tax cash flow. (16 Points) b) Determine PW of after tax for each alternative. (5 Points) c) Which Alternative should be selected? (2 Points)

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