51. GO Tutorial Abbott placed into service a fl exible manufacturing cell costing

$850,000 early this year. They fi nanced $425,000 of it at 11% 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%, MARR is 10% 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 Plan 1.

b. The loan is paid back using Plan 2.

c. The loan is paid back using Plan 3.

d. The loan is paid back using Plan 4.