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 estimated 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- 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.) Present value Net present value index . b KReq A and B > Req D and E Complete this question by entering your answers in the tabs below. Req D and E Req A and B 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 lessA Unadjusted rate of return Payback period years years