Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be used for rigorous reliability testing and burn-in. It is installed for \($1.4\) million and will have a salvage value of \($200,000\) after 8 years. Its use will create an opportunity to increase sales by \($650,000\) per year and will have operating expenses of \($250,000\) per year. Corporate income taxes are 40 percent. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR if the chamber is kept for 8 years. After-tax MARR is 10 percent.

a. Use straight-line depreciation (no half-year convention).

b. Use MACRS-GDS and state the appropriate property class.

c. Use double declining balance depreciation (no half-year convention, no switching).