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 $5,800 Henredon will borrow $100,000 at 13 8 over 6 years, paying only interest each year and paying all the principle in the sixth year It will produce $49,000 in net revenue each year during its life All dollar amounts are expressed in real dollars Depreciation follows MACRS 7 year property, taxes are 25 , the real after tax MARR is 10 , and inflation is 3 9 Determine the actual after tax cash flows for each year ATCF 0 $enter a dollar amount ATCF 1 $enter a dollar amount ATCF 2 $enter a dollar amount ATCF 3 $enter a dollar amount ATCF 4 $enter a dollar amount ATCF 5 $enter a dollar amount ATCF 6 $enter a dollar amount ATCF 7 $enter a dollar amount ATCF 8 $enter a dollar amount ATCF 9 $enter a dollar amount ATCF 10 $enter a dollar amount ATCF 11 $enter a dollar amount ATCF 12 $enter a dollar amount Determine the PW of the after tax cash flows PW $T $enter a dollar amount Determine the AW of the after tax cash flows AW $T $enter a dollar amount Determine the FW of the after tax cash flows FW $T $enter a dollar amount Determine the combined IRR of the after tax cash flows IRR c enter percentages Determine the combined ERR of the after tax cash flows ERR c enter percentages Determine the real IRR of the after tax cash flows IRR r enter percentages Determine the real ERR of the after tax cash flows ERR r enter percentages

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Posted on Jul 10, 2024

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

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 $5,800. Henredon will borrow $100,000 at 13.8% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $49,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is 3.9%.

Determine the actual after-tax cash flows for each year. ATCF₀ = $enter a dollar amount ATCF₁ = $enter a dollar amount ATCF₂ = $enter a dollar amount ATCF₃ = $enter a dollar amount ATCF₄ = $enter a dollar amount ATCF₅ = $enter a dollar amount ATCF₆ = $enter a dollar amount ATCF₇ = $enter a dollar amount ATCF₈ = $enter a dollar amount ATCF₉ = $enter a dollar amount ATCF₁₀ = $enter a dollar amount ATCF₁₁ = $enter a dollar amount ATCF₁₂ = $enter a dollar amount
Determine the PW of the after-tax cash flows. PW_$T = $enter a dollar amount
Determine the AW of the after-tax cash flows. AW_$T = $enter a dollar amount
Determine the FW of the after-tax cash flows. FW_$T = $enter a dollar amount
Determine the combined IRR of the after-tax cash flows. IRR_c = enter percentages %
Determine the combined ERR of the after-tax cash flows. ERR_c = enter percentages %
Determine the real IRR of the after-tax cash flows. IRR_r = enter percentages %
Determine the real ERR of the after-tax cash flows. ERR_r = enter percentages %