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3 Apps M Gmail YouTube Maps Sao Paulo: Urban Futur... Penn State Undergradu... Welcome - Temple Univ... Courses Playground - OpenAI API Locked and Loaded: Th... Ch 10: Problems Question 4 of 5 < -/1 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 $1,500,000 and will have a salvage value of $250,000 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. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 5-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is 4.0%. a. Determine the actual after-tax cash flows for each year. ATCF0 = $ ATCF = $ ATCF2 = $ ATCF3 = $ ATCF4 = $ ATCF5 = $ ATCF6 = $ ATCF7 = $ Search PRE SUPPORT 9:06 PM 11/8/2023 App Mi San Paul Urban Futur Penn State Undergrad Welcome Temple Unde Coues Playground Ch 10: Problems Question 4 of 5 < > ATCF-S b. Determine the PW of the after-tax cash flows. PWST-$ c. Determine the AW of the after-tax cash flows. AWST-S d. Determine the FW of the after-tax cash flows. FWST-$ e. Determine the combined IRR of the after-tax cash flows. IRR f. Determine the combined ERR of the after-tax cash flows. ERR & Determine the real IRR of the after-tax cash flows. IRR, % h. Determine the real ERR of the after-tax cash flows. ERR,- Q Search D -/1 C 61
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