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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 $1,420,000 and will have a salvage value of $210,000 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 4.4%. a. Determine the actual after-tax cash flows for each year. ATCFO = $ ATCF1 = $ ATCF2 = $ ATCF3 = $ ATCF4 - $ ATCF5 = $ ATCF = $ ATCF7 = $ ATCF3 = $ 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, - % Parts a-d: Round your answer to 2 decimal places. The tolerance is 5. Parts e-h: Round your answer to 2 decimal places and present in percentage format. The tolerance is +0.1

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