Hyundai USA has numerous robotic welders and checkers with vision. One underbody robotic welder costing $1,200,000 (7-year property class) was installed and is increasing productivity by 2.5 percent in one area. The result is a savings of $500,000 per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only $120,000. Hyundai borrowed $550,000 at 11 percent for 5 years. They plan to keep the welder for 8 years. Hyundai's marginal tax rate is 40 percent, and their MARR is 9 percent after taxes.

Determine the PW, FW, AW, IRR, and ERR for the investment plan shown in the following situations 1. interest only at the end of each year of the loan, plus principal at the end of the last year 2. equal annual principal payments plus interest on the unpaid loan balance 3. equal annual principal plus interest payments during each year of the loan 4. principal plus interest is paid at the end of the loan period