A) Net Present Value and Profitability Index using straight-line depreciation;

B) Net Present Value and Profitability Index using double declining depreciation. Please show some work.

Investment cost is 550,000

Gross cash inflows for 5 years are: Year 1: 90,000 Year 2: 130,000 Year 3: 160,000 Year 4:

190,000 Year 5: 250,000

The cost of money is 12%

No salvage value

Estimated Tax rate for all years is 25%

Using straight-line depreciation

Cash inflows occur at end of each year.