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

1. 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.

2. 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.

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

5. 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.)