Abbott placed into service a flexible manufacturing cell costing \($850,000\) early this year. They financed \($425,000\) of it at 11 percent per year over 5 years. Gross income due to the cell is expected to be \($750,000\) with deductible expenses of \($475,000.\) Depreciation is based on MACRS-GDS, and the cell is in the 7-year property class. Abbott’s marginal tax rate is 40 percent, MARR is 10 percent after taxes, and they expect to keep the cell for 8 years. Determine the PW, FW, AW, IRR, and ERR for the investment if

a. the loan is paid back using Method 1 (interest only at the end of each year of the loan, plus principal at the end of the last year).

b. the loan is paid back using Method 2 (equal annual principal payments plus interest on the unpaid loan balance).

c. the loan is paid back using Method 3 (equal annual principal plus interest payments during each year of the loan).

d. the loan is paid back using Method 4 (principal plus interest is paid at the end of the loan period).