Pineapple Corporation is considering the purchase of a piece of equipment with a cost of $800,000. The equipment is expected to have a useful life of ten years with a salvage value of $100,000 at the end of that time. The company expects to have the attached cash revenues and expenses from the equipment over its life. The company will use the 200% (double) declining balance depreciation method for depreciating the equipment. The company has an effective tax rate of 35%. Management wants all projects to earn a minimum rate of return of 12% on an after tax basis and all projects to pay back their initial investment on an after tax basis in 5.5 years or less. REQUIRED: (1) Using the attached form, prepare a schedule showing the data for income, cash flows, and present value of the cash flows required for analysis of this capital investment. (2) Using the attached forms, compute the following items for this project on an after tax basis. Be sure to show all appropriate supporting computations. (a) Accounting rate of return on average investment. Round your percentage answer to two decimal places (four decimal places in all). (b) Cash payback period. Round your answer to two decimal places. (c) Net present value. Round your answer to the nearest whole dollar. (3) Should the company invest in the equipment? Explain your answer. PINEAPPLE CORPORATION ESTIMATED CASH REVENUES AND EXPENSES FROM CAPITAL INVESTMENT IN EQUIPMENT PINEAPPLE CORPORATION CALCULATION OF DEPRECIATION -200\% DECLINING BALANCE FOR CAPITAL BUDGETING INVESTMENT \begin{tabular}{|ll|} \hline Year & 1 \\ \hline Year & 2 \\ \hline Year & 3 \\ \hline Year & 4 \\ \hline Year & 5 \\ \hline Year & 6 \\ \hline Year & 7 \\ \hline Year & 8 \\ \hline Year & 9 \\ \hline Year 10 \\ \hline \end{tabular} (2) PINEAPPLE CORPORATION (a) CALCULATION OF AFTER TAX ACCOUNTING RATE OF RETURN FOR CAPITAL BUDGETING INVESTMENT Average After Tax Accounting Income = Total After Tax Income / Number of Yerss Average After Tax Accounting Income = Average Investment in Assets = Average Investment in Assets = After Tax Accounting Rate of Retum = Average After Tax Accounting Income / Average Investment in Assets