Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR). Carefully refer to Table 12-11 to determine in what depreciation category the asset falls. (Hint: it is not 10 years.) The asset will cost \\( \\$ 120,000 \\), and it will produce earnings before depreciation and taxes of \\( \\$ 37,000 \\) per year for three years, and then \\( \\$ 19,000 \\) a year for soven more years. The firm has a tax rate of 25 percent. Assume the cost of capital is 12 percent. In doing your analysis, if you have years in which there is no depreciation, merely enter a zero for depreciation. Use Table 12-12. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator mothods. a. Calculate the net present value. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. b. Based on the net present value, should Universal Electronics purchase the asset? Yes No