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there is nothing for this to be updated with Raytheon wishes to use an automated environmental chamber in the manufacture of electronic components. The chamber
there is nothing for this to be updated with
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 $1,440,000 and will have a salvage value of $230,000 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 4.8%. a. Determine the actual after-tax cash flows for each year. ATCF, = $ ATCF1 = 366,720.00 ATCF2 ATCF3 386,837.42 ATCF4 neras ATCF5 = ATCF6 ATCF7 = ATCF3 = 550,024.54Step by Step Solution
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