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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 407 Weeks Ago, 5 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Elias wants to perform an after-tax evaluation of equivalent methods A and B to electrostatically 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 T e = 34% and a spreadsheet, he obtained the results AW A = $−2176 and AW B = $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 using MACRS?

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