Jordan Electronics is considering investing in manufacturing equipment expected to cost $290,000. The equipment has...
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Jordan Electronics is considering investing in manufacturing equipment expected to cost $290,000. The equipment has an estimated useful life of four years and a salvage value of $ 16,000. It is expected to produce incremental cash revenues of $145.000 per year. Jordan has an effective income tax rate of 30 percent and a desired rate of return of 12 percent .of $1 and PVA of $ (Use appropriate fector(s) from the tables provided.) Required a. Determine the nel present value and the present value index of the investment, assuming that Jordan 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 Jordan uses double-declining- balance depreciation for financial and income tax reporting d. Determine the payback period and unadjusted rate of retum (use average investment, assuming that Jordan uses straight-line depreciation e. Determine the payback period and unadjusted rate of return fuse average investment, assuming that Jordan uses 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 Complete this question by entering your answers in the tabs below Reg A and B Reg D and E Determine the net present value and the present value index of the investment, assuming that Harper uses straight-line depreciation and double declining balance for financial and income tax reporting. (Round your answers for "Not present value to the nearest Whole dollar amount and your answers for Walue index to dedmal place Net present value 160,584 $ 80,730 Present value index 106,584.00 3.03
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