The last step in evaluating equivalent methods to remove airborne particulate ma

Question

The last step in evaluating equivalent methods to remove airborne particulate matter from clean rooms is after tax flow analysis. Using the information shown,MACRS depreciation for 3 year property, a 5 year study period, an annual after tax MARR of 10%, and a tax rate of 34%, perform an acceptable engineering after tax economic evaluation to identify the best economic choice. Report the economic measure of each alternative in your answer.

                                                       method A                  method B

purchase cost $                       100,000                              150,000

annual operating cost $            15,000                                6,000

expected life,years                    5                                         5

Explanation / Answer

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