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Abbott placed into service a flexible manufacturing cell costing $810,000 early this year. They financed $425,000 of the initial cost of the cell at 11%

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Abbott placed into service a flexible manufacturing cell costing $810,000 early this year. They financed $425,000 of the initial cost of the cell at 11% per year over 5 years. Gross income due to the cell is expected to be $750,000 with deductible expenses of $495,000. Depreciation is based on MACRS GDS, and the cell is in the 7-year property class. Abbott's marginal tax rate is 25%, MARR is 14% after taxes, and they expect to keep the cell for 8 years. Determine the PW.FW, AW, IRR, and ERR for the investment 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). PW a. Method 1 $ FW AW IRR b. Method 2 $ $ $ c. Method 3 $ $ $ d. Method 4 $ $ Round your answers to 2 decimal places. Do not round intermediate computations. Present IRR and ERR in percentage format. Tolerance is 10.00 and +0.02. Abbott placed into service a flexible manufacturing cell costing $810,000 early this year. They financed $425,000 of the initial cost of the cell at 11% per year over 5 years. Gross income due to the cell is expected to be $750,000 with deductible expenses of $495,000. Depreciation is based on MACRS GDS, and the cell is in the 7-year property class. Abbott's marginal tax rate is 25%, MARR is 14% after taxes, and they expect to keep the cell for 8 years. Determine the PW.FW, AW, IRR, and ERR for the investment 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). PW a. Method 1 $ FW AW IRR b. Method 2 $ $ $ c. Method 3 $ $ $ d. Method 4 $ $ Round your answers to 2 decimal places. Do not round intermediate computations. Present IRR and ERR in percentage format. Tolerance is 10.00 and +0.02

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