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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 burn-in. It is installed for $1,360,000 and will have a salvage value of $180,000 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 40%, the real after-tax MARR is 10%, and inflation is 3.6%. a. Determine the actual after-tax cash flows for each year. ATCF0 = $ ATCF1 = $ ATCF2 = $ ATCF3 = $ ATCF4- ATCF7 = $ ATCF8 = $

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