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Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of

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Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,000. It will produce $45,000 in net revenue each year during its life. Corporate income taxes are 40 percent, and the after-tax MARR is 10 percent. Determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR, if the router is kept for 12 years. Use MACRS-GDS and state the appropriate property class. End of Year ATCF 0 - 190000 A A 1 37860.40 2 $ 45612.40 3 $ 40292.40 4 36492.40 5 $ 33786.80 6 $ 33779.20 7 $ 33786.80 8 $ 30389.60 $ 27000.00 10 $ 27000.00 11 $ 27000.00 12 $ 3000 After-tax PW: $ 48799.858106 After-tax AW:$ 7162.028 For dollar amounts, carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is +10. After-tax IRR: 15.542 % After-tax ERR: 12.1156030 % For rates, carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is +0.2. Property Class: 7-Year Property

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