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Posted on Jul 17, 2024

Check my work Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an estimated useful life of four years

Check my work Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an estimated useful life of four years and a salvage value of $22.000. It is expected to produce incremental cash revenues of $175,000 per year. Stuart has an effective income tax rate of 30 percent and a desired rate of return of 12 percent. PV of S1 and PVA of Use appropriate factor(s) from the tables provided.) Required a. Determine the net present value and the present value index of the investment, assuming that Stuart uses straight-Ine depreciation for financial and income tax reporting. b. Determine the net present value and the present Value Index of the investment, assuming that Stuart uses double-ddelining balance depreciation for financial and income tax reporting. d. Determine the payback period and unadjusted rate of return (use average Investment), assuming that Stuart uses straight line depreciation e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Stuart uses double declining balance depreciation. (Note:Use average annual cash flow when computing the payback period and average annual income when determining the unadjusted rate of return) Complete this question by entering your answers in the tabs below. Reg A and B Red and Determine the net present value and the present value index of the investment, assuming that Stuart uses straight line depreciation and double-declining-balance for financial and income tax reporting. (round your answers for Never to the nearest whole dollar amount and your answers for "Present Value Index 102 cucimal per SOT 9665580 ZOLZSOTOSESSO ES50890 TEOLO FOTO TABLE 1 PRESENT VALUE OF $ 45 5 6% 75 84 943 12 1.45 165 205 0.9615390952351 0.913396 0934579 0.925026 091731 0909091 0892852 07719 0362069 OB 09245500907029 0.580996 0873139 0.857339 0.341680 0.526446 0797194 07046 0.743163 064444 3 0.563838 0.539619 0.016 0.793533 0.772183 0.751215 0.711780 06709720640058 OSTS704 0.792091 0.762895 0735030 0.703 0.00301 0.635515 0.592050 05552291 0.15233 5 0:521927 0.733526 0.747253 0.712906 0650931 0.620921 0.56727 0319369 0476113 0401073 6 0790315 0.746215 0.701901 0.666342 06.10170 0.596202 004470500631 0155557 0110103349 70.759913 0.710631 0.665057 0.02750 0383190 0313156 0:152349 O20000 0335 0.270082 1 07:30690 06765390627412 05030090540209 0301 0.466507 0,403353 0350559 0912300 0.702567 0.614609 0.391898 0.549 O. S002449 0.460125 031098 0.160600307505 0.26295 0193807 10 0.675564 0.613913 0558395 0305349 0463193 0222411 0335513 0321923 0.2007 0704 150 11 0619551 0554679 0.520703 0.475093 0.350400227470 033661 0.1937 120-624597 0556837 0490969 0.3971 10.333 O 0631 0256075 01201559 100 0112157 13 0.00057405303210269 0214964 0,167690 0326179 OLM9001 09112000 14 0.577475 0505058 0.312301 0.307317 0310161 0.299240 0.26231020160159119-00772 0555265 0461017 0417205 02631605152127539 0.393920 0110096 107900001005 16 DOO 0523900 0.45511 0.393610 0.191590025107 01766 016392 03136 OH34 070 2070015073 0.250209 0150340295504 09:59 0.007551 0 130010000110 100003625 0415521 blo 0.000000 19 0474612035T DOUNE 033051 02765030.231710101190 0.13 0.25110 01.053 200456337 0.376.390311505 G10070072705 051355 046004 6 EBOBETO CESLOSO SPEED CITITO 191000ROSTO SI ITOOOO LOZ9COLECISO EL SELSCE O STICOLO: CONTO BOLLO TESOTEO TOOTO HOLID DOC TOHO TOLEDO TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 LOT SPE 1 SOCEELT 111621 1999191 3 45 0.961533 1 356095 2775091 3.629595 4.451522 5.242137 6003055 IDIOT 1 SELECT 5 6 " Tott LOR SOSO O 01 VOTOT SE 0952351 1859.410 2.723345 3.545951 4.329477 5.075692 5.756373 6.263213 7:107523 7.721725 3306114 5.563252 9393573 999564 10 370065 10.687770 TU276066 11.60955 8 9 10 CO9169 TOT 64 7 95 10 129 169 2013 0.943396 0934579 0.9259260917431 0909091 0.392857 0277193 AM 0833320 1533393 1.809018 1735537 690051 160523213223 2673012 2.624316 2577097 25312952156853 2016.32 23456902106 3.465106 33357211 3.3121223.239720 3.169865 303739 2913712 2.70015 4.212360 4.100197 3.992210 3.59051 2.790767 3.604770 3.433001 3274795 2990612 4.917324 4.766540 4622350 4355201 3830600 3.6.17363335510 5582381 51339259 3.306370 5002952 2065419 450757 1258503 3604592 6 209794 3.971299 5.74663933M819 33326 4967610 4.63868 34339337160 6.801692 6:315232 5.995247 3.759024 53250 1062 7.360037 7021552 6.71000 641650 6.144567 56502223216116 3332 19472 7830875 7.393674 7.13096463051910095061 5957699 5452 37060 5.333844 7942636 7:530070 7.100725 1369 5.660293 TOM 39217 3.352603 357651 7.9037767450 710333042545 3521634433601 5745163 5,240377,706250 9291954 7366637 S6330 0.0020 610507 9.107914 0.350.419 3.000686 7000030 6.510 3695564675493 6365000 70287096.92 51668490 10.105995 95406493551369 312555 9.12100 10.477260 763223 71930 7154 $543631021553 10.127603 10 059052 07:30 170013195 9.3770077556156.20141209670 0.360030 3373355 +13406 90035091905115 111511616335505 10 59401193151479120506513364 7920581 COS TETO 12 7435332 3:110596 3.760477 9335074 9035688 10 563123 11 118357 11 652296 12.165669 12 059297 1313939 13590326 911099 99 OPEZILO 10SELT 14 15 16 17 19 TO 20 FOLIO ICESO CI CODE 12102210 1660 Complete this question by entering your answers in the tabs below. Req A and B Reg D and E Determine the net present value and the present value index of the investment, assuming that Stuart uses straight-line depreciation and double-declining-balance for financial and income tax reporting. (Round your answers for "Net present value to the nearest whole dollar amount and your answers for "Present value Index to 2 decimal places.) Nat Present Value Present Value Index a. Straight-line method b. Double-declining balance method Reg D and E> Reg A and B Reg D'and E Determine the payback period and unadjusted rate of return (use average investment), assuming that Stuart uses straight- line depreciation and double-declining-balance depreciation. (Note: Use average annual cash flow when computing the payback period and average annual income when determining the unadjusted rate of return.) (Round your answers to 2 decimal places.) Show less Payback Period Unadjusted Rate of Return % % years d. Straight-line method e. Double-declining-balance method years Req A and B