please solve the problem by filling all box and clear Henredon purchases a...
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please solve the problem by filling all box and clear
Henredon purchases a high-precision programmable router for shaping furniture components for $190,000. It is expected to last 12 years and have a salvage value of $5,400. Henredon will borrow $100.000 at 13.4% over 6 years, paying only interest each year and paying all the principle in the sixth year. It will produce $47,000 in net revenue each year during its life. All dollar amounts are expressed in real dollars. Depreciation follows MACRS 7-year property, taxes are 25%, the real after-tax MARR is 10%, and inflation is 3.9% a. Determine the actual after-tax cash flows for each year. ATCF - $ ATCF - $ ATCF2-$ ATCF3 - $ ATCF - $ ATCF3 - $ ATCF - $ ATCF,-$ ATCF3 - $ ATCF,-$ ATCF 10 - $ ATCF 11 - $ ATCF 12 - $ 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. FW- $ 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. ERRE
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