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1 Problem #4 Walker Industries is deciding whether to automate one phase of its production process. The manufacturing equipment they would need has a six-year

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1 Problem #4 Walker Industries is deciding whether to automate one phase of its production process. The manufacturing equipment they would need has a six-year life and will cost $905,000. Projected net cash inflows are as follows: YEAR I 262,000 2 255,000 3 224,000 210,000 204,000 6 173,000 Requirements: 1) Compute this project's NPV using Walker Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 4 5

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