Henredon purchases a high-precision programmable router for shaping furniture components for \($190,000.\) It is expected to last 12 years and have a salvage value of \($5,000.\) Henredon will borrow \($100,000\) at 13 percent over 6 years, paying only interest each year and paying all the principal in the sixth year. It will produce \($45,000\) in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 40 percent, the real after-tax MARR is 10 percent, and inflation is 3.9 percent.

a. Determine the actual after-tax cash flows for each year.

b. Determine the PW of the after-tax cash flows.

c. Determine the AW of the after-tax cash flows.

d. Determine the FW of the after-tax cash flows.

e. Determine the combined IRR of the after-tax cash flows.

f. Determine the combined ERR of the after-tax cash flows.
g. Determine the real IRR of the after-tax cash flows.
h. Determine the real ERR of the after-tax cash flows.