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AADIR INFLACION (R$ a A$) ATCF in A$ 1. Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f = 3%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) AS, = RS, (F/P.F,k-b) = RS. (1+345) Depreciation method a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using As cash flows them evaluate all alternatives on ATCF using incremental analysis PW. A $10 9 SO ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life B $15 5 6 1 8 o $20 3 4 2 8 1 8 (1+1)^k Inflation A$- BTCF Depreciation Taxable Macrs-GDS Income TAX A$ - 40'TI ATCF EOY[K] RS BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in R$ AADIR INFLACION (R$ a A$) ATCF in A$ 1. Select the preferred alternative using ATCF-Present-Worth(PW) Using Incremental analysis Method after recognition of inflation. (f = 3%). Tax rate 40% MARR ATCF = 10% Assume actual cash flows are in real dollars (R$) )(base=0) AS, = RS, (F/P.F,k-b) = RS. (1+345) Depreciation method a. For Alt-A Straight-Line (SL) Method (Classical Method) SL=(Investment-SV)/N b. For Alt-B MACRS GDS 5 years recovery period. c. For Alt-C MACRS-ADS 5 years recovery period. Find the ATCF for the alternatives using As cash flows them evaluate all alternatives on ATCF using incremental analysis PW. A $10 9 SO ($000) R$ Capital Investment Annual Expenses Annual Revenues Market Value (MV or SV)) Useful life B $15 5 6 1 8 o $20 3 4 2 8 1 8 (1+1)^k Inflation A$- BTCF Depreciation Taxable Macrs-GDS Income TAX A$ - 40'TI ATCF EOY[K] RS BTCF 0 1-8 8 REMOVER INFLACION (A$ a R$) ATCF in R$

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