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Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an estimated useful life of four years and a salvage

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Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an estimated useful life of four years and a salvage value of $22,000. It is expected to produce incremental cash revenues of $175,000 per year. Stuart 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 a. Determine the net present value and the present value index of the investment, assuming that Stuart 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 Stuart 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 Stuart uses straight line depreciation e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Stuart 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.) Complete this question by entering your answers in the tabs below. Red A and 2D and E Determine the net present value and the present value index of the investment, assuming that Stuart 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 a. Straight-line method b. Double-declining balance method Checy 16.56 points a. Determine the net present value and the present value Index of the investment, assuming that Stuart 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 Stuart 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 start uses straight-Line depreciation e. Determine the payback period and unadjusted rate of return use average Investment assuming the States 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) P Complete this question by entering your answers in the tabs below RGA and B Randt Determine the payback period and unadjusted rate of return (use average investment), assuming that start was strwyt Iine 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. Rund your wit 2 decimal place) Shower Payback Period Und Rate of Retur d Straighine method e. Double-doring-blance med ya years

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