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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 $1,340,000 and will have a salvage value of $170,000 after 8 years. Its use will create an opportunity to increase sales by $650,000 per year and will have operating expenses of $250,000 per year. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 5 -year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is 3.4%. a. Determine the actual after-tax cash flows for each year. ATCF0=$ATCF1=$ATCF2=$ATCF=$ATCF4=$ATCF5=$ATCF6=$ATCF7=$ATCF8=$ b. Determine the PW of the after-tax cash flows. PWST=$ c. Determine the AW of the after-tax cash flows. AW5T=$ d. Determine the FW of the after-tax cash flows. FW5T=$ e. Determine the combined IRR of the after-tax cash flows. IRRc= % f. Determine the combined ERR of the after-tax cash flows. ERRc= % g. Determine the real IRR of the after-tax cash flows. IRRr= h. Determine the real ERR of the after-tax cash flows. ERRr= Parts ad : Round your answer to 2 decimal places. The tolerance is \pm 5

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