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I need help. Please i want an accounting professor to solve it, many had solved and got it wrong. Solve in table form ONLY just
I need help. Please i want an accounting professor to solve it, many had solved and got it wrong.
Solve in table form ONLY just like the question for easy understanding. Thanks.
Adams Electronics is considering investing in manufacturing equipment expected to cost $210,000. The equipment has an estimated useful life of four years and a salvage value of $ 15,000. It is expected to produce incremental cash revenues of $105,000 per year. Adams 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 a. Determine the net present value and the present value index of the investment, assuming that Adams 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 Adams 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 Adams uses straight-line depreciation. e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Adams 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.)
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