Electronic Games is moving very quickly to introduce a new interrelated set of video games. The initial investment for equipment to produce the necessary electronic components is \($9\) million, with \($4\) million borrowed at 12 percent over 6 years and paying only the interest each year and the entire principal in the last year. The salvage value after 6 years is \($700,000.\) Anticipated net contribution to income is \($6\) million the first year, decreasing by \($1\) million each year for 6 years, with all dollar amounts expressed in real dollars. Depreciation follows MACRS 5-year property, taxes are 40 percent, the real MARR is 18 percent, and inflation is 4 percent.

a. Determine the actual after-tax cash flows for each year.

b. Determine the PW of the after-tax cash flows.

c. Determine the AW of the after-tax cash flows.

d. Determine the FW of the after-tax cash flows.

e. Determine the combined IRR of the after-tax cash flows.

f. Determine the combined ERR of the after-tax cash flows.

g. Determine the real IRR of the after-tax cash flows.

h. Determine the real ERR of the after-tax cash flows.