Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midpoint in its asset depreciation range (ADR).

The asset will cost $210,000 and it will produce earnings before depreciation and taxes of $68,000 per year for three years and then $31,000 a year for seven more years.

The firm has a tax rate of 35 percent.

Assume the cost of capital is 13 percent.

Required:

1. Calculate the net present value.

(Do not round intermediate calculations and round answer to 2 decimal places)

2. Based on the net present value, should Universal Electronics purchase the asset? Yes or No