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 $1,480,000 and will have a salvage value of $240,000 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 5 0 Determine the actual after tax cash flows for each year ATCF 0 $enter a dollar amount ATCF 1 $enter a dollar amount ATCF 2 $enter a dollar amount ATCF 3 $enter a dollar amount ATCF 4 $enter a dollar amount ATCF 5 $enter a dollar amount ATCF 6 $enter a dollar amount ATCF 7 $enter a dollar amount ATCF 8 $enter a dollar amount Determine the PW of the after tax cash flows PW $T $enter a dollar amount Determine the AW of the after tax cash flows AW $T $enter a dollar amount Determine the FW of the after tax cash flows FW $T $enter a dollar amount Determine the combined IRR of the after tax cash flows IRR c enter percentages Determine the combined ERR of the after tax cash flows ERR c enter percentages Determine the real IRR of the after tax cash flows IRR r enter percentages Determine the real ERR of the after tax cash flows ERR r enter percentages

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Posted on Aug 05, 2024

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

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 $1,480,000 and will have a salvage value of $240,000 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 5.0%.

Determine the actual after-tax cash flows for each year.ATCF₀ = $enter a dollar amount ATCF₁ = $enter a dollar amount ATCF₂ = $enter a dollar amount ATCF₃ = $enter a dollar amount ATCF₄ = $enter a dollar amount ATCF₅ = $enter a dollar amount ATCF₆ = $enter a dollar amount ATCF₇ = $enter a dollar amount ATCF₈ = $enter a dollar amount
Determine the PW of the after-tax cash flows. PW_$T = $enter a dollar amount
Determine the AW of the after-tax cash flows. AW_$T = $enter a dollar amount
Determine the FW of the after-tax cash flows. FW_$T = $enter a dollar amount
Determine the combined IRR of the after-tax cash flows. IRR_c = enter percentages %
Determine the combined ERR of the after-tax cash flows. ERR_c = enter percentages %
Determine the real IRR of the after-tax cash flows. IRR_r = enter percentages %
Determine the real ERR of the after-tax cash flows. ERR_r = enter percentages %