Jordan Electronics is considering investing in manufacturing equipment expected to cost $290,000 The equipment has an estimated useful life of four years and a salvage value of $16,000 It is expected to produce incremental cash revenues of $145,000 per year Jordan has an effective income tax rate of 30 percent and a desired rate of return of 12 percent (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided ) Required Determine the net present value and the present value index of the investment, assuming that Jordan uses straight line depreciation for financial and income tax reporting Determine the net present value and the present value index of the investment, assuming that Jordan uses double declining balance depreciation for financial and income tax reporting Determine the payback period and unadjusted rate of return (use average investment), assuming that Jordan uses straight line depreciation Determine the payback period and unadjusted rate of return (use average investment), assuming that Jordan 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 ) Req A and B Req D and E Determine the net present value and the present value index of the investment, assuming that Jordan 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 Present Value Index a Straight line method b Double declining balance method Determine the net present value and the present value index of the investment, assuming that Jordan 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 )

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Jordan Electronics is considering investing in manufacturing equipment expected to cost $290,000. The equipment has an estimated useful life of four years and a salvage

Jordan Electronics is considering investing in manufacturing equipment expected to cost $290,000. The equipment has an estimated useful life of four years and a salvage value of $16,000. It is expected to produce incremental cash revenues of $145,000 per year. Jordan has an effective income tax rate of 30 percent and a desired rate of return of 12 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Required

Determine the net present value and the present value index of the investment, assuming that Jordan uses straight-line depreciation for financial and income tax reporting.
Determine the net present value and the present value index of the investment, assuming that Jordan uses double-declining-balance depreciation for financial and income tax reporting.

Determine the payback period and unadjusted rate of return (use average investment), assuming that Jordan uses straight-line depreciation.
Determine the payback period and unadjusted rate of return (use average investment), assuming that Jordan 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.)

Req A and B
Req D and E

Determine the net present value and the present value index of the investment, assuming that Jordan 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.)