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Harper Electronics is considering investing in manufacturing equipment expected to cost $250,000. The equipment has an estimated useful life of four years and a salvage

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Harper Electronics is considering investing in manufacturing equipment expected to cost $250,000. The equipment has an estimated useful life of four years and a salvage value of $25,000. It is expected to produce incremental cash revenues of $125,000 per year. Harper has an effective income tax rate of 30 percent and a desired rate of return of 10 percent. PV of $1 and PVA of $1 (Use appropriate factor(s) from the tables provided.) Required o. Determine the net present value and the present value index of the investment, assuming that Harper uses straight-line depreciation for financial and income tax reporting, b. Determine the net present value and the present value Index of the investment, assuming that Harper uses double-declining- balance depreciation for financial and income tax reporting, d. Determine the payback period and unadjusted rate of retum (use average investment), assuming that Harper uses straight line depreciation e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Harper 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. Rog A and B Reg D and E Determine the net present value and the present value Index of the investment, assuming that Harper 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.) Net Present Present Value Value Index Straight line method b. Double-declining balance method Reg D and E> Complete this question by entering your answers in the tabs below. Reg A and B Reg D Ind E Determine the payback period and unadjusted rate of return (use average Investment), assuming that Harper 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 d Straight-line method Double-declining balance method Unadjusted Rate of Return 95 years years 9

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