7-43. Alternative Methods I and II are proposed for a security operation. The following is comparative information: Method II Method Initial investment $10,000 $40,000 Useful (ADR) life 5 years 10 years Terminal market value $1,000 $5,000 Annual expenses $14,500 $7,000 Determine which is the better alternative based on an after-tax annual cost analysis with an effective income tax rate of 25% and an after-tax MARR of 15%, assuming the following methods of depreciation: (7.9) SL MACRS (Sullivan, 20180327, p. 379) Sullivan, W. G., Wicks, E. M., Koelling, C. P. (20180327). Engineering Economy, 17th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9780134838229 Always check citation for accuracy before use.