1.	Calculate the net present value of this equipment.
2.	Calculate the accrual accounting rate of return based on net initial investment for this equipment.
3.	Should Linda

accept the project? Will

Linda

accept the project if her bonus depends on achieving an accrual accounting rate of return of

14

%?

How can this conflict be resolved?

$125,000 before taxes and an investment in working capital at the beginning of the project of $2,500 that will be returned at the project's end. Rosewood's tax rate 35%. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. The net present value of this equipment is Requirements 1. Calculate the net present value of this equipment. 2. Calculate the accrual accounting rate of return based on net initial investment for this equipment. 3. Should Linda accept the project? Will Linda accept the project if her bonus depends on achieving an accrual accounting rate of return of 14% ? How can this conflict be resolved