Stuart Electronics is considering investing in manufacturing equipment expected to cost $350,000. The equipment has an...

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Stuart Electronics is considering investing in manufacturingequipment expected to cost $350,000. The equipment has an estimateduseful life of four years and a salvage value of $ 22,000. It isexpected to produce incremental cash revenues of $175,000 per year.Stuart has an effective income tax rate of 30 percent and a desiredrate of return of 12 percent. (PV of $1 and PVA of $1) (Useappropriate factor(s) from the tables provided.)

Required
Determine the net present value and the present value index ofthe investment, assuming that Stuart uses straight-linedepreciation for financial and income tax reporting.
Determine the net present value and the present value index ofthe investment, assuming that Stuart uses double-declining-balancedepreciation for financial and income tax reporting.
Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Stuart uses straight-linedepreciation.
Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Stuart usesdouble-declining-balance depreciation. (Note: Use averageannual cash flow when computing the payback period and averageannual income when determining the unadjusted rate of return.)
Complete this question by entering your answersin the tabs below.
Req A and B
Req D and E
Determine the net present value and the present value index ofthe investment, assuming that Harper uses straight-linedepreciation and double-declining-balance for financial and incometax reporting. (Round your answers for "Net present value" to thenearest whole dollar amount and your answers for "Present valueindex" to 2 decimal places.)
Net present value Present value index
a.
b.
Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Harper uses straight-linedepreciation and double-declining-balance depreciation.(Note: Use average annual cash flow when computing thepayback period and average annual income when determining theunadjusted rate of return.) (Round your answers to 2 decimalplaces.)
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Payback period Unadjusted rate of return
d. years %
e. years %

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Stuart Electronics is considering investing in manufacturingequipment expected to cost $350,000. The equipment has an estimateduseful life of four years and a salvage value of $ 22,000. It isexpected to produce incremental cash revenues of $175,000 per year.Stuart has an effective income tax rate of 30 percent and a desiredrate of return of 12 percent. (PV of $1 and PVA of $1) (Useappropriate factor(s) from the tables provided.) RequiredDetermine the net present value and the present value index ofthe investment, assuming that Stuart uses straight-linedepreciation for financial and income tax reporting.Determine the net present value and the present value index ofthe investment, assuming that Stuart uses double-declining-balancedepreciation for financial and income tax reporting.Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Stuart uses straight-linedepreciation.Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Stuart usesdouble-declining-balance depreciation. (Note: Use averageannual cash flow when computing the payback period and averageannual income when determining the unadjusted rate of return.)Complete this question by entering your answersin the tabs below.Req A and BReq D and EDetermine the net present value and the present value index ofthe investment, assuming that Harper uses straight-linedepreciation and double-declining-balance for financial and incometax reporting. (Round your answers for "Net present value" to thenearest whole dollar amount and your answers for "Present valueindex" to 2 decimal places.)Net present valuePresent value indexa.b.Determine the payback period and unadjusted rate of return (useaverage investment), assuming that Harper uses straight-linedepreciation and double-declining-balance depreciation.(Note: Use average annual cash flow when computing thepayback period and average annual income when determining theunadjusted rate of return.) (Round your answers to 2 decimalplaces.)Show lessPayback periodUnadjusted rate of returnd.years%e.years%