EXERCISE 3: AFTER-TAX EVALUATION Paul is designing the interior walls of an industrial building. In some places, it is i

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Exercise 3 After Tax Evaluation Paul Is Designing The Interior Walls Of An Industrial Building In Some Places It Is I 1 (33.75 KiB) Viewed 35 times

EXERCISE 3: AFTER-TAX EVALUATION Paul is designing the interior walls of an industrial building. In some places, it is important to reduce noise transmission across the wall. Two construction options-stucco on metal lath (S) and bricks (B)-each have about the same transmission loss, approximately 33 decibels. This will reduce noise attenuation costs in adjacent office areas. Paul has estimated the first costs and after-tax savings each year for both designs. (a) Use the CFAT values and an after-tax MARR of 7% per year to determine which is economically better. (b) Use a spreadsheet to select the alternative and determine the required first cost for the plans to break even.