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4 part question, need help asap! Pls and thx! Will leave a like Swan Industries is deciding whether to automate one phase of its production
4 part question, need help asap! Pls and thx! Will leave a like
Swan Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $930,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows) Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute this project's NPV using Swan's 18% hurdie rate. Should Swan invest in the equipment? Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for a negative nel present value.) Net Cash PV Factor Years Inflow -16%) Present Value Year 1 Present value of each year's inflow: (n = 1) Year 2 Present value of each year's inflow: (n=2) Year 3 Present value of each year's inflow: (n = 3) Year 4 Present value of each year's Inflow. In 4) Enter any number in the edit fields and then click Check Answer Data Table Year 1 $ 261,000 Year 2 254,000 Year 3 Year 4 224,000 210,000 204,000 Year 5 Year 6 177,000 3 Print Done Check Answer. Get More Help these updates Awork: M9 Reference 10% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.646 0.5920544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 Dario 16 let 71 555 AR 10417 1036210315 In 275 10 20 11R2 0.141 0.125 0.099 0.078 n 192 ni RA nn nan Print Done WT Reference - X du Toy ck ck M Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.862 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.8081.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2723 2673 2624 2.5772531 2.487 2.402 2.322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3387 3.312 3.240 3.170 3.037 2.914 2855 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4329 4212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5242 5.0764.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5,033 48684564 4.288 4.160 4.039 3.812 3.605 Period 8 7.652 7.325 7,020 6.733 6.463 6.210 5.971 5.7475.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 Period 9 8,568 8.1627.786 7.435 7.108 6.802 6.515 6.247 5.996 5.759 5,328 4.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.1117.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4.833 4.494 4.192 Period 11 10.368 9.787 9253 8.760 8.306 7887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.0294,656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.9437.536 7.1616.814 6.194 5.660 5.421 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7487 7.103 6.424 5.842 5,583 5.1974.793 4.439 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.724 5.342 4.910 4.533 Darind 15 12 AR 1 G 111.111 Anl 721.00 R 50 R 7 ANG 5.468 5.008 4.611 RRR 142.5AA7 5 525 5002 A75 Print Done UT ns will Requirements 1. Compute this project's NPV using Swan's 16% hurdle rate. Should Swan invest in the equipment? 2. Swan could refurbish the equipment at the end of six years for $106,000. The refurbished equipment could be used one more year, providing $77,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $53,000 residual value at the end of year 7. Should Swan invest in the equipment and refurbish it after six years? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value.) renth Print Done nd then click Check Answer. + Pagan Clear All Step by Step Solution
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