Problem 12-27 (Algo) MACRS depreciation and net present value [LO12-4] Universal Electronics is considering the purchase of manufacturing equipment with a 10 -year midpoint in its asset depreciation range (ADR). Corefully refer to Toble 12 -11 to determine in what depreciation category the asset falls. (Hint it is not 10 years) The asset wili cost $170,000, and it will produce earnings before depreciation and taxes of $58,000 per year for three years, and then $27,000 a year for seven more yeors. The firm has o tax rate of 25 percent. Assume the cost of capital is 11 percent. In doing your analysis, If you have years in which there is no depreciation, merely enter a zero for depreciation Use Jable 12-12. Use Appendix B for an approximete answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. Based on the net present value, should Univerzal Electronics purchase the atset? Problem 12-27 (Algo) MACRS depreciation and net present value [LO12-4] Universal Electronics is considering the purchase of manufacturing equipment with a 10 -year midpoint in its asset depreciation range (ADR). Corefully refer to Toble 12 -11 to determine in what depreciation category the asset falls. (Hint it is not 10 years) The asset wili cost $170,000, and it will produce earnings before depreciation and taxes of $58,000 per year for three years, and then $27,000 a year for seven more yeors. The firm has o tax rate of 25 percent. Assume the cost of capital is 11 percent. In doing your analysis, If you have years in which there is no depreciation, merely enter a zero for depreciation Use Jable 12-12. Use Appendix B for an approximete answer but calculate your final answer using the formula and financial calculator methods. a. Calculate the net present value Note: Do not round intermediate calculations and round your answer to 2 decimal places. b. Based on the net present value, should Univerzal Electronics purchase the atset