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Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum...

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Accounting

Perform a presentworth (PW)-based evaluation of the two alternatives below using aspreadsheet. The after-tax minimum acceptable rate of return (MARR)is 8% per year, Modified Accelerated Cost Recovery System (MACRS)depreciation applies, and Te = 40%. The (GI -OE) estimate is made for the first 3 years; it is zero in year 4when each asset is sold.

AlternativeXY
First Cost, $–8,000–13,000
Salvage Value,Year 4, $02,000
GI-OE, $ perYear3,5005,000
Recovery Period,Years33

The PW for alternativeX is determined to be____ $ .

The PW for alternativeY is determined to be____ $ .

Alternative (Click toselect)XY is selected.

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