Abbott placed into service a flexible manufacturing cell costing $890,000 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 $450,000. 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 6% 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 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 FW AW IRR ERR. a. Method 1 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