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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 O $ 1 1 $ 2 3 $ 4 TA un $ 6 $ ta 7 $ 8 $ 9 $ 10 $ 11 12 $ After-tax PW: $ After-tax AW: $ 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: After-tax ERR: % 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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