(Solution) - Elias wants to perform an after tax evaluation of equivalent met -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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Elias wants to perform an after-tax evaluation of equivalent methods A and B to electro statically remove airborne particulate matter from clean rooms used to package liquid pharmaceutical products. Using the information shown, MACRS depreciation with n = 3 years, a 5-year study period, after-tax MARR = 7% per year, and Te = 34% and a spreadsheet, he obtained the results AWA = $?2176 and AWB = $3545. Any tax effects when the equipment is salvaged were neglected. Thus, with MACRS depreciation, method B is the better method. Now, use classical SL depreciation with n = 5 years to evaluate the alternatives. Is the decision different from that reached usingMACRS?