A firm is examining some alternatives to invest their money. All the alternatives have the same...

A firm is examining some alternatives to invest their money. All the alternatives have the same useful life, 10 years. The interest rate is 7% and the firm has a flat tax rate of 31%. The options are summarized in the following table.

Alternatives	First Cost	Annual Costs	Annual Benefits	Dep. Method
A	$17,000	$900	$4,500	SL
B	$25,000	$1,050	$3,250	SOYD
C	$22,000	$1,125	$5,125	MACRS (7-yr)

What is the after-tax IRR for project A?

What is the after-tax NPV for project B?

What is the before-tax NPV for project C?

Remember to answer using one of the following forms: 99.99 or 99.99%

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Expert Solution

ekkarill92 answered 1 year ago

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