Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an estimate 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 depreciat 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-bala 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 declinin balance depreciation. (Note:Use average annual cash flow when computing the payback period and average annual income wh determining the unadjusted rate of return.) Complete this question by entering your answers in the tabs below. Req A and B Reg D and E Determine the net present value and the present value index of the investment, assuming that Stuart uses straight-line marting/Round your wars for Net present value SCE WS 16 101 160000 0 TOOOO06160 CET STOGOSTO TOTO TABLE 1 PRESENT VALUE OF 4 55 75 149 165 2015 10961530053351 05921 0.0193 200033 199996 017339 0157339 03016000026146 070710 000123100 30.1960.8633033961905162980.793832 0.7221030.95135 0211700 TT 0616053 0704 OSSA002020.7920910.702595 0735030OTORS 6 0,63550 0.592030 0.552291 00335 301319 0.7535260.72350 0711906 065155 0009931 0620921 0.8672 0:519369 047611 0,001 0.790315 0.410 0339 307599150710651 0022750 0585490 055703 031315 OSLO0279002 073060007074170500000 05269303160466507 0.03 0.550550305035 033560 90.2005 0.644009 0591090 0.360010 250 269 0.1990 03091440 loc 0.0079 0.500 0.475093 OL 06245 105505 0307114 0.15550215631 0.356075 020755027 0.36764301019 019661 022911 0.60 0.145127 00 OOST297950 ROCO OLLOVO OD 1960LD STOSO COSSSTO SOS990 LOTOSTO FOTO MOTO 6200CO DOCTO COCOSECCO FICO FOSCO 01 TO 16 OCTO 10 CASSERO 21:56 02.1990 DOLCOTTOFOSCO CISCO COMO 9606 FESOTO E IROCCO DUO SOTTO COCOS SETESDE LCTOLETTO O O O OOOOOOOOO 0000090901 ECONDASHLEO ISICO 97LO9LZITO DESCOCO POSTS TO CONTRO COLEOPOLD YOO LOSTOLUO DOLOR FOTO COTTOSEOTSITO 1960 DE SOCIOLO 19616000 ECOCCO LOCO DITO LOCIDO OSSO ANTO 1653004531130956160307550210003315700217639 0,16113 0123 09304 000 02705000019H16350 000 000 000 2015601370000.350.419 0150170430141007222 0,026004 TABLE 2 PRESENT VALUE OF AN ANNUITY OF $ 58 5 0.952381 1.850410 273345 100001 TESTO 0961538 55095 2775091 301939 5132 5242137 0.002055 6737745 ISGSPSS CEPOCET LELOR - Othe LORET 1989 091 5075692 5700373 0463213 71073 7.7217315 361 1363252 ZESSERE 900011 IDONEO 108 12 160 20 0943396 0.93457909259160017010909091 0592857 0377193 0.662000833333 333.393 1. SUOI 1.783765 1759511 1935537 1500051 100 1527778 201102 2674316 2.577097 2.531295 2.406652 3216 BBS190 21053 3465106 335721 3.312127 3239720 3.169505 103730 2.9157 2.91 2733 1212364 4100197 3992710 85965 3.004770 1433031 24290 29001 4917224 4766340 4622550 45591943556 . 36447110 5.532331 5359309 32001703037951 186319 1563757 1230300 3604502 6.209794 5.971299 3.7466333481933496 497610 0.0192 0515233 5.9994737590343320250 946 000 7360057 700354 7100316412058 0.144567 3.650223321010 192073 7.5675 7 190671 9:13964 6005191 6.495001 3017099 1000 034 1.943030 7:530075 716077 0.113692 19:37 31910 3:557633 1357651 7003776769010356 02:15 SEH52651 9.291933 144546477001502366607 610.000 0.7122.19 9. 107914 19:49 0.000000 7600000 010 OT 515154566754 10.105195 9.410619 51.9312507033709 697900 429301 10 72200 9.76.121633 11.00 517 100500019371857 11735025 2011 30 40 SUITE 905 115116103355059.002509 61920 13.30 1745 111000 105910111213554663301460300 SUD 16 HISTO LET PICO CLOSH Toyo LITER 10 1 176017 13 9355024 201551 10.56313 1 10 1100 12 15 3630207 13 30 1353000 TI 19 LO 699991 9.6906 10.3065 10.117770 17006 11659537 120331 12.10 1965 SFIDOO ECOPLET COOL 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 awwers for at present value to the nearest whole dollar amount and your answers for Present value index to 2 decimal place. Not Present Valu Present Value Indox a. Straight-line method b. Double-declining balance method
