Perform a PW-based evaluation of the two alternatives below using (a) by hand, and (b) by spreadsheet solutions. The after-tax MARR is 8% per year, MACRS depreciation applies, and Te = 40%. The (GI ? OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.
PWY = -13,000 + 4733(P/F,8%,1) + 5311(P/F,8%,2) + 3770(P/F,8%,3) + 385(P/F,8%,4)
+ 1200(P/F,8%,4)
= $93
. Select alternative X
(b) Spreadsheet: Select X with the larger PW value. Note handling of $2000 salvage for Y
in year 4
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