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Please answer from A to H please!!!!!!!! Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12
Please answer from A to H please!!!!!!!!
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 $5,600. Henredon will borrow $100,000 at 13.6% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $48,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is 3.9%. a. Determine the actual after-tax cash flows for each year. ATCF0$ATCF1$ATCF2$ATCF3$ATCF4$ATCF5$ATCF6$ATCF7$ATCF8$ATCF9$ATCF10$ATCF11$ATCF12$ b. Determine the PW of the after-tax cash flows. PW$T$ c. Determine the AW of the after-tax cash flows. AW$T$ 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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