Question

In: Accounting

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%

Solutions

Expert Solution

ekkarill92 answered 2 years ago
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