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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 $4,400. Henredon will borrow $100,000 at 12.4% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $42,000 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% a. Determine the actual after-tax cash flows for each year. ATCFo= $ ATCF, = $ ATCF2 = $ ATCF3 - $ ATCF4 = $ ATCFS - $ ATCF = $ ATCF, - $ ATCF3 = $ ATCF = $ ATCF 10 = $ ATCF11 - $ ATCF 12 = $ b. Determine the PW of the after-tax cash flows. PWST = $ c. Determine the AW of the after-tax cash flows. AWST - $ d. Determine the FW of the after-tax cash flows. FWST = $ e. Determine the combined IRR of the after-tax cash flows. IRR - % f. Determine the combined ERR of the after-tax cash flows. ERR.- % g. Determine the real IRR of the after-tax cash flows. IRR = % h. Determine the real ERR of the after-tax cash flows. ERR, % Parts a-d: Round your answer to 2 decimal places. The tolerance is +5. Parts e-h: Round your answer to 2 decimal places and present in percentage format. The tolerance is +0.1

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