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Please answer A to H PLEASE!!!!!!!!!! Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be
Please answer A to H PLEASE!!!!!!!!!!
Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber is to be used for rigorous reliability testing and burn-in. It is installed for $1,380,000 and will have a salvage value of $190,000 after 8 years. Its use will create an opportunity to increase sales by $650,000 per year and will have operating expenses of $250,000 per year. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 5-year property, taxes are 25\%, the real after-tax MARR is 10\%, and inflation is 3.8%. a. Determine the actual after-tax cash flows for each year. ATCF0$ATCF1$ATCF2$ATCF3$ATCF4$ATCF5$ATCF6$ATCF7$ATCF8$ b. Determine the PW of the after-tax cash flows. PW$T$ c. Determine the AW of the after-tax cash flows. AWST$ d. Determine the FW of the after-tax cash flows. FW$T$ e. Determine the combined IRR of the after-tax cash flows. IRRc- % f. Determine the combined ERR of the after-tax cash flows. ERRc- % g. Determine the real IRR of the after-tax cash flows. IRRr- % h. Determine the real ERR of the after-tax cash flows. ERRr- % Parts a-d: Round your answer to 2 decimal places. The tolerance is \pm 5 . Parts e-h: Round your answer to 2 decimal places and present in percentage format. The tolerance is \pm 0.1Step by Step Solution
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