View Policies Current Attempt in Progress Abbott placed into service a flexible manufacturing cell costing $830,000 early this year. They financed $425,000 of the initial cost of the cell at 11% per year over 5 years. Gross income due to the cell is expected to be $750,000 with deductible expenses of $485,000. Depreciation is based on MACRS- GDS, and the cell is in the 7-year property class. Abbott's marginal tax rate is 25%. MARR is 12% after taxes, and they expect to keep the cell for 8 years. 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 lequal 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). PW FW AW IRR a. Method 1 $ $ 5 b. Method 2$ 5 $ c. Method 3 5 5 $ $ d. Method 4 $ $ Round your answers to 2 decimal places. Do not round intermediate computations. Present IRR and ERR in percentage format Tolerance is 10.00 and 10.02 View Policies Current Attempt in Progress Abbott placed into service a flexible manufacturing cell costing $830,000 early this year. They financed $425,000 of the initial cost of the cell at 11% per year over 5 years. Gross income due to the cell is expected to be $750,000 with deductible expenses of $485,000. Depreciation is based on MACRS- GDS, and the cell is in the 7-year property class. Abbott's marginal tax rate is 25%. MARR is 12% after taxes, and they expect to keep the cell for 8 years. 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 lequal 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). PW FW AW IRR a. Method 1 $ $ 5 b. Method 2$ 5 $ c. Method 3 5 5 $ $ d. Method 4 $ $ Round your answers to 2 decimal places. Do not round intermediate computations. Present IRR and ERR in percentage format Tolerance is 10.00 and 10.02