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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

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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 burnin. It is installed for $800,000, $400,000 of which is borrowed at 11% for 5 years, and will have a salvage value of $175,000 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. Corporate income taxes are 25%. Develop tables using a spreadsheet to determine the ATCF for each year and the aftertax PW, AW, IRR, and ERR. ifthe chamber is kept for 8 yea rs. Aftertax MARR is 10%. Determine for each year the ATCF and the PW, FW, AW, IRR, and ERR for the investment if: Click here to access theTVM Factor Table Calculator Click here to access the MACRSGDS table. Part a straightline depreciation is used over 8 years with no halfyear convention and the loan is paid back using Method 1 {interest only at the end of each year ofthe loan, plus principal at the end ofthe last year}. End of Year ATCF 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ ? $ 8 $ PW: $ FW: 3': AW: 55 For dollar amounts. carry all Interim calculations to 5 decimal places and then round your nai answer to the nearest dollar. The tolerance is :50. IRR: 96 ERR: 96

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