Chevron Phillips has put into place new laboratory equipment for the production of chemicals; the first cost is \($1,800,000\) installed. Chevron Phillips borrows 45 percent of all capital needed, and the borrowing rate is 12.5 percent over 4 years. The throughput rate for in-process test samples has increased the capacity of the lab, with a net savings of \($X\) per year. Depreciation follows MACRS-GDS, ATMARR is 11 percent, and the planning horizon is 6 years with a salvage value of \($250,000\) at that time. Based on a 40% marginal tax rate, use Goal Seek or Solver in Excel® to determine the value of X such that ATMARR is exactly achieved, no more and no less, 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).