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show process Frankin Electronics is considering investing in manufacturing equipment expected to cost $270,000. The equipment has an estimated useful life of four years and
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Frankin Electronics is considering investing in manufacturing equipment expected to cost $270,000. The equipment has an estimated useful life of four years and a salvage value of $ 16,000. It is expected to produce incremental cash Franklin 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 sppropriave foctor(e) from the tables provided.) revenues of $135,000 per year Required Determine the net present value and the present value index of the investment, assuming that Franklin uses straight-line depreciation for financial and income tax reporting. balance depreciation for financial and income tax reporting. depreciation. declining-balance depreciation. (Note- Use average annual cash flow when computing the payback period and average annual value index of the investment, assuming that Franklin uses double-declining- d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Franklin uses straight-line e. Determine the payback period and unadjusted rate of return (use average investment, assuming that Franklin uses double- income when determining the unadjusted rate of return.) abs below Complete this question by entering your answers in the t Req A and BReg D and E present value and the present value index of the investment, assuming that Harper uses straight-line Determine the net depreciation and double-declining-balance for financial and incorme tax reporting. (Round your answers for "Net present value" to the nearest whole dollar amount and your answers for t whole dollar amount and your answers for Present value indesx to 2 decimal places.) Present value index value Frankin nas an erecuve inconie tax rate or au percerm ana a aesirea rate or retum O1 1 percen ty o3 ana PVA o eppropriate factort) from the tables provided) Requlred a. Determine the net present value and the present value index of the investment, assuming that Franklin 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 Franklin uses double-declining d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Franklin uses straight-Hin e. Determine the payback period and unadjusted rate of return (use average investment). assuming that Franklin uses double- balance depreciation for financial and income tax reporting depreciation. 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.) 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-dedlining-balance for financial and income taxe 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 inde a. Req D and E Prev 20 of 21 Next > Frankin nas an errecuve income vax rate oT su percert ana a aesirea rate or returm or iz percent y orl ana PVA OT 3) tuse opproprlote factor) from the tables pravidedJ Required a. Determine the net present value and the present value index of the investment, assurning that Franklin 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 Franklin uses double-declining d. Determine the payback period and unadjusted rate of return (use average investment), assuming that Franklin uses straight-Hine e. Determine the payback period and unadjusted rate of return (use average investment, assuming that Franklin uses double balance depreciation for financial and income tax reporting. depreciation. 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.) Complete this question by entering your answers in the tabs below Req A and B Req D and E 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 less& Payback period Unadjusted rate of returm dl yesrs e. years Req A and B C Prev 20 of 21NextStep by Step Solution
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