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. All dollar amounts are expressed in actual dollars. Depreciation follows MACRS 7-year property, taxes are 40 percent, the actual after-tax MARR is 14.62 percent, and inflation is 4.2 percent.

a) Determine the real after-tax cash flows for each year.

b) Determine the PW of the after-tax cash flows.

c) Determine the AW of the after-tax cash flows.

d) Determine the FW of the after-tax cash flows.

e) Determine the real IRR of the after-tax cash flows.

f) Determine the real ERR of the after-tax cash flows.

g) Determine the combined IRR of the after-tax cash flows.

h) Determine the combined ERR of the after-tax cash flows.