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 $1,320,000 and will have a salvage value of $160,000 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 3.2%. a. Determine the actual after-tax cash flows for each year. ATCF - $ ATCF1-$ ATCF2 = $ ATCF3 = $ ATCFA = $ ATCF3 = $ ATCF6 - $ ATCF - $ ATCF $ b. Determine the PW of the after-tax cash flows. PWST - $ c. Determine the AW of the after-tax cash flows. AWST = $ d. Determine the FW of the after-tax cash flows. FWST = $ e. Determine the combined IRR of the after-tax cash flows. IRR = % f. Determine the combined ERR of the after-tax cash flows. ERR - % g. Determine the real IRR of the after-tax cash flows. IRR, % h. Determine the real ERR of the after-tax cash flows. ERR- % 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 $1,320,000 and will have a salvage value of $160,000 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 3.2%. a. Determine the actual after-tax cash flows for each year. ATCF - $ ATCF1-$ ATCF2 = $ ATCF3 = $ ATCFA = $ ATCF3 = $ ATCF6 - $ ATCF - $ ATCF $ b. Determine the PW of the after-tax cash flows. PWST - $ c. Determine the AW of the after-tax cash flows. AWST = $ d. Determine the FW of the after-tax cash flows. FWST = $ e. Determine the combined IRR of the after-tax cash flows. IRR = % f. Determine the combined ERR of the after-tax cash flows. ERR - % g. Determine the real IRR of the after-tax cash flows. IRR, % h. Determine the real ERR of the after-tax cash flows. ERR- %