Hyundai USA has numerous robotic welders and checkers with vision. One underbody robotic welder costing \($1,200,000\) (7-year property class) was installed and is increasing productivity by 2.5 percent in one area. The result is a savings of \($500,000\) per year. Deductible expenses other than depreciation and interest associated with the installed robotic welder are only \($120,000.\) Hyundai borrowed \($550,000\) at 11 percent for 5 years. They plan to keep the welder for 8 years. Hyundai’s marginal tax rate is 40 percent, and their MARR is 9 percent after taxes. Determine the PW, FW, AW, IRR, and ERR for the investment if

a. the loan is paid back using Method 1 (interest only at the end of each year of the loan, plus principal at the end of the last year).

b. the loan is paid back using Method 2 (equal annual principal payments plus interest on the unpaid loan balance).

c. the loan is paid back using Method 3 (equal annual principal plus interest payments during each year of the loan).

d. the loan is paid back using Method 4 (principal plus interest is paid at the end of the loan period).