Problem 12-27 (Algo) MACRS depreciation and net present value [LO12-4] Universal Electronics is considering the purchase of manufacturing equipment with a 10-year midipoint in its asset deprecidion range (ADR). Carefully refer to:lable 12 - -1tito determine in what depreciation category the asset falls, (Hint, it is not 10 years.) The asset will cost$225,000, and it will produce eamings before depreclationand taxes of $74,000 per year for three years; and then $36. 000 a yeat for seven more years. The firm has a tax rate of 25 percent. Assume the cost of capital is 14 percent. In idoing your analysis, if you have years in which there is no depreciation, merely enter a zero for depreclation. Use Table 1212 Use Appendix 8 lor an approximate answer but calculate your final answer using the formula and financial calculator methods: o. Calculate the niet present value Note: Do not round intermediate colculations and round your onswer to 2 decimal places. b. Based on the net present value, should Universal Flectronics purchase the asset? cimals)