Universal Electronics is considering the purchase of manufacturing equipment with a 10 -year midpoint in its asset depreciation range (ADR). Carefully refer to Joble 12-11 to determine in what depreciation category the asset falls. (Hint it is not 10 years.) The asset will cost $160,000, and it will produce earnings before depreciation and taxes of $50,000 per year for three years, and then $26,000 a year for seven more years. The firm has a 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 fable 12-12. Use Appendix 8 for an approximate answer but calculate your final answer using the formula and financial caiculator 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 Universal Electronics purchase the asset? Table 12-11 Categories for depreciation write-off Tahle 12.12 Denreciation percentages (expressed in decimals) Appendix B