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Henredon purchases a high-precision programmable router for shaping furniture components for $220,000. 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 $220,000. It is expected to last 12 years and have a salvage value of $5,200. It will produce $47,000 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 PW of the after-tax cash flows

Determine the AW of the after-tax cash flows

Determine the FW of the after-tax cash flows

Determine the combined IRR of the after-tax cash flows

Determine the combined ERR of the after-tax cash flows

Determine the real IRR of the after-tax cash flows

Determine the real ERR of the after-tax cash flows

Doing it in Excel is appreciated but not required

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