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Have already posted this question however all of the answers shown came back as incorrect besides the payback period for (d) and (e) and the
Have already posted this question however all of the answers shown came back as incorrect besides the payback period for (d) and (e) and the unadjusted rate of return for (d). Looking for correct solutions for all other parts. Thank you.
1770 IAWNE 07 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 4% 5% 6 % 7% 8 % 0.961538 0.952381 0.943396 0.934579 0.925926 1.886095 1.859410 1.833393 1.808018 1.783265 3 2.775091 2.723248 2.673012 2.624316 2.577097 4 3.629895 3.545951 3.465106 3.387211 3.312127 4.451822 4.329477 4.212364 4.100197 3.992710 5.242137 5.075692 4.917324 4.766540 4.622880 6.002055 5.786373 5.582381 5.389289 5.206370 6.732745 6.463213 6.209794 5.971299 5.746639 7.435332 7.107822 6.801692 6.515232 6.246888 10 8.110896 7.721735 7.360087 7.023582 6.710081 11 8.760477 8.306414 7.886875 7.498674 7.138964 9.385074 8.863252 8.383844 7.942686 7.536078 13 9.985648 9.393573 8.852683 8.357651 7.903776 14 10.563123 9.898641 9.294984 8.745468 8.244237 15 11.118387 10.379658 9.712249 9.107914 8.559479 16 11.652296 10.837770 10.105895 9.4466498.851369 17 12.165669 11.274066 10.477260 9.763223 9.121638 18 12.659297 11.689587 10.827603 10.059087 9.371887 19 13.133939 12.085321 11.158116 10.335595 9.603599 20 13.590326 12.462210 11.469921 10.594014 9.818147 9 % 10% 12% 14% 0.917431 0.909091 0.892857 0.877193 1.7591111.735537 1.690051 1.646661 2.531295 2.486852 2.4018312.321632 3.239720 3.169865 3.037349 2.913712 3.889651 3.790787 3.604776 3.433081 4.485919 4.355261 4.111407 3.888668 5.032953 4.868419 4.563757 4.288305 5.534819 5.334926 4.967640 4.638864 5.995247 5.759024 5.328250 4.946372 6.417658 6.144567 5.650223 5.216116 6.805191 6.495061 5.937699 5.452733 7.160725 6.813692 6.194374 5.660292 7.486904 7.103356 6.423548 5.842362 7.786150 7.366687 6.628168 6.002072 8.060688 7.606080 6.810864 6.142168 8.312558 7.823709 6.973986 6.265060 8.543631 8.021553 7.119630 6.372859 8.755625 8.201412 7.249670 6.467420 8.905115 8.3649207.365777 6.550369 9.128546 8.513564 7.469444 6.623131 16% 0.862069 1.605232 2.245890 2.798181 3.274294 3.684736 4.038565 4.343591 4.606544 4.833227 5.028644 5.197107 5.342334 5.467529 5.575456 5.668497 5.748704 5.817848 5.877455 5.928841 20% 0.833333 1.527778 2.106481 2.588735 2.990612 3.325510 3.604592 3.837160 4.030967 4.192472 4.327060 4.439217 4.532681 4.610567 4.675473 4.729561 4.774634 4.812195 4.843496 4.869580 TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 20% 1 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 8 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084 Problem 10-22A (Algo) Effects of straight-line versus accelerated depreciation on an investment decision LO 10-2, 10-4 Rooney Electronics is considering investing in manufacturing equipment expected to cost $330,000. The equipment has an estimat useful life of four years and a salvage value of $ 20,000. It is expected to produce incremental cash revenues of $165,000 per year. Rooney has an effective income tax rate of 30 percent and a desired rate of return of 14 percent. (PV of $1 and PVA of $1) (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 Rooney 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 Rooney uses double-declining- balance depreciation for financial and income tax reporting. d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Rooney uses straight-line depreciation. e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Rooney 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. Req A and B Req 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 value $ $ 74,290 81,138 Present value index 1.23 1.25 b. Complete this question by entering your answers in the tabs below. Req A and B Req D and 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 2.38 years 2.38 years Unadjusted rate of return 37.12 % 18.56% 1770 IAWNE 07 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $1 4% 5% 6 % 7% 8 % 0.961538 0.952381 0.943396 0.934579 0.925926 1.886095 1.859410 1.833393 1.808018 1.783265 3 2.775091 2.723248 2.673012 2.624316 2.577097 4 3.629895 3.545951 3.465106 3.387211 3.312127 4.451822 4.329477 4.212364 4.100197 3.992710 5.242137 5.075692 4.917324 4.766540 4.622880 6.002055 5.786373 5.582381 5.389289 5.206370 6.732745 6.463213 6.209794 5.971299 5.746639 7.435332 7.107822 6.801692 6.515232 6.246888 10 8.110896 7.721735 7.360087 7.023582 6.710081 11 8.760477 8.306414 7.886875 7.498674 7.138964 9.385074 8.863252 8.383844 7.942686 7.536078 13 9.985648 9.393573 8.852683 8.357651 7.903776 14 10.563123 9.898641 9.294984 8.745468 8.244237 15 11.118387 10.379658 9.712249 9.107914 8.559479 16 11.652296 10.837770 10.105895 9.4466498.851369 17 12.165669 11.274066 10.477260 9.763223 9.121638 18 12.659297 11.689587 10.827603 10.059087 9.371887 19 13.133939 12.085321 11.158116 10.335595 9.603599 20 13.590326 12.462210 11.469921 10.594014 9.818147 9 % 10% 12% 14% 0.917431 0.909091 0.892857 0.877193 1.7591111.735537 1.690051 1.646661 2.531295 2.486852 2.4018312.321632 3.239720 3.169865 3.037349 2.913712 3.889651 3.790787 3.604776 3.433081 4.485919 4.355261 4.111407 3.888668 5.032953 4.868419 4.563757 4.288305 5.534819 5.334926 4.967640 4.638864 5.995247 5.759024 5.328250 4.946372 6.417658 6.144567 5.650223 5.216116 6.805191 6.495061 5.937699 5.452733 7.160725 6.813692 6.194374 5.660292 7.486904 7.103356 6.423548 5.842362 7.786150 7.366687 6.628168 6.002072 8.060688 7.606080 6.810864 6.142168 8.312558 7.823709 6.973986 6.265060 8.543631 8.021553 7.119630 6.372859 8.755625 8.201412 7.249670 6.467420 8.905115 8.3649207.365777 6.550369 9.128546 8.513564 7.469444 6.623131 16% 0.862069 1.605232 2.245890 2.798181 3.274294 3.684736 4.038565 4.343591 4.606544 4.833227 5.028644 5.197107 5.342334 5.467529 5.575456 5.668497 5.748704 5.817848 5.877455 5.928841 20% 0.833333 1.527778 2.106481 2.588735 2.990612 3.325510 3.604592 3.837160 4.030967 4.192472 4.327060 4.439217 4.532681 4.610567 4.675473 4.729561 4.774634 4.812195 4.843496 4.869580 TABLE 1 PRESENT VALUE OF $1 n 4% 5% 6% 7% 8% 9% 10% 12% 14% 16% 20% 1 0.961538 0.952381 0.943396 0.934579 0.925926 0.917431 0.909091 0.892857 0.877193 0.862069 0.833333 2 0.924556 0.907029 0.889996 0.873439 0.857339 0.841680 0.826446 0.797194 0.769468 0.743163 0.694444 0.888996 0.863838 0.839619 0.816298 0.793832 0.772183 0.751315 0.711780 0.674972 0.640658 0.578704 0.854804 0.822702 0.792094 0.762895 0.735030 0.708425 0.683013 0.635518 0.592080 0.552291 0.482253 5 0.821927 0.783526 0.747258 0.712986 0.680583 0.649931 0.620921 0.567427 0.519369 0.476113 0.401878 0.790315 0.746215 0.704961 0.666342 0.630170 0.596267 0.564474 0.506631 0.455587 0.410442 0.334898 7 0.759918 0.710681 0.665057 0.622750 0.583490 0.547034 0.513158 0.452349 0.399637 0.353830 0.279082 8 0.730690 0.676839 0.627412 0.582009 0.540269 0.501866 0.466507 0.403883 0.350559 0.305025 0.232568 9 0.702587 0.644609 0.591898 0.543934 0.500249 0.460428 0.424098 0.360610 0.307508 0.262953 0.193807 10 0.675564 0.613913 0.558395 0.508349 0.463193 0.422411 0.385543 0.321973 0.269744 0.226684 0.161506 11 0.649581 0.584679 0.526788 0.475093 0.428883 0.387533 0.350494 0.287476 0.236617 0.195417 0.134588 12 0.624597 0.556837 0.496969 0.444012 0.397114 0.355535 0.318631 0.256675 0.207559 0.168463 0.112157 13 0.600574 0.530321 0.468839 0.414964 0.367698 0.326179 0.289664 0.229174 0.182069 0.145227 0.093464 14 0.577475 0.505068 0.442301 0.387817 0.340461 0.299246 0.263331 0.204620 0.159710 0.125195 0.077887 15 0.555265 0.481017 0.417265 0.362446 0.315242 0.274538 0.239392 0.182696 0.140096 0.107927 0.064905 16 0.533908 0.458112 0.393646 0.338735 0.291890 0.251870 0.217629 0.163122 0.122892 0.093041 0.054088 17 0.513373 0.436297 0.371364 0.316574 0.270269 0.231073 0.197845 0.145644 0.107800 0.080207 0.045073 18 0.493628 0.415521 0.350344 0.295864 0.250249 0.211994 0.179859 0.130040 0.094561 0.069144 0.037561 19 0.474642 0.395734 0.330513 0.276508 0.231712 0.194490 0.163508 0.116107 0.082948 0.059607 0.031301 20 0.456387 0.376889 0.311805 0.258419 0.214548 0.178431 0.148644 0.103667 0.072762 0.051385 0.026084 Problem 10-22A (Algo) Effects of straight-line versus accelerated depreciation on an investment decision LO 10-2, 10-4 Rooney Electronics is considering investing in manufacturing equipment expected to cost $330,000. The equipment has an estimat useful life of four years and a salvage value of $ 20,000. It is expected to produce incremental cash revenues of $165,000 per year. Rooney has an effective income tax rate of 30 percent and a desired rate of return of 14 percent. (PV of $1 and PVA of $1) (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 Rooney 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 Rooney uses double-declining- balance depreciation for financial and income tax reporting. d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Rooney uses straight-line depreciation. e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Rooney 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. Req A and B Req 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 value $ $ 74,290 81,138 Present value index 1.23 1.25 b. Complete this question by entering your answers in the tabs below. Req A and B Req D and 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 2.38 years 2.38 years Unadjusted rate of return 37.12 % 18.56%Step by Step Solution
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