useful life of four years and a salvage value of manufacturing equipment expected to cost $250,000. The equipment has an estimated Fanning has an effective income tax rate of 40 percent and expected to produce incremental cash revenues of $125,000 per year appropriate factor(s) from the tables provided.) Required a. Determine the net present value and the present value index of the investment, assuming that Fanning 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 Fanning 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 Fanning uses straight-line depreciation. e. Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses doubledeclining-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. Determine the net present value and the present value index of the investment, assuming that Farining 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.) Determine the payback period and unadjusted rate of return (use average investment), assuming that Fanning uses straightline 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.) (Round your ansifers to 2 decimal places.)