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

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Universal Electronics is considering the purchase ofmanufacturing equipment with a 10-year midpoint in its assetdepreciation range (ADR). Carefully refer to Table 12–11 todetermine in what depreciation category the asset falls. (Hint: Itis not 10 years.) The asset will cost $275,000, and it will produceearnings before depreciation and taxes of $90,000 per year forthree years, and then $44,000 a year for seven more years. The firmhas a tax rate of 35 percent. Assume the cost of capital is 13percent. In doing your analysis, if you have years in which thereis no depreciation, merely enter a zero for depreciation. Use Table12–12. Use Appendix B for an approximate answer but calculate yourfinal answer using the formula and financial calculatormethods.
a. Calculate the net present value. (Do not round intermediatecalculations and round your answer to 2 decimal places.)

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Universal Electronics is considering the purchase ofmanufacturing equipment with a 10-year midpoint in its assetdepreciation range (ADR). Carefully refer to Table 12–11 todetermine in what depreciation category the asset falls. (Hint: Itis not 10 years.) The asset will cost $275,000, and it will produceearnings before depreciation and taxes of $90,000 per year forthree years, and then $44,000 a year for seven more years. The firmhas a tax rate of 35 percent. Assume the cost of capital is 13percent. In doing your analysis, if you have years in which thereis no depreciation, merely enter a zero for depreciation. Use Table12–12. Use Appendix B for an approximate answer but calculate yourfinal answer using the formula and financial calculatormethods.a. Calculate the net present value. (Do not round intermediatecalculations and round your answer to 2 decimal places.)