5, E12-31A (similar to) Part 1 of 4 HW Score: 14.06%, 0.98 of 7 points O Points: 0 of 1 Save Berkner Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $910,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view the present value table.) table.) (Click the icon to view the future value table.) table.) (Click the icon to view the present value annuity (Click the icon to view the future value annuity 12 K Data table - Score: 14.06%, 0.98 S Points: 0 of 1 Year 1..... $262,000 production process. T cash inflows are as foll Year 2.... $254,000 Year 3.... $223,000 ck the icon to view the Year 4...... $210,000 Year 5.. $203,000 ck the icon to view the f Year 6 $173,000 Print Done Cloonall Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2. 0.980 0.961 0.943 0.925 0.907 0.890 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 Period 4 0.961 0.924 0.888 0.855 0.823 Period 5 0.951 0.906 0.863 0.822 0.797 0.769 0.743 0.718 0.694 0.609 0.579 0.751 0.712 0.675 0.641 0.792 0.683 0.636 0.592 0.552 0.516 0.482 0.437 0.402 0.784 0.747 0.681 0.621 0.567 0.519 0.476 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.857 0.826 0.794 0.75 Print Done Reference Period 7 0.933 0.871 0.813 0.760 Period 8 0.923 0.853 0.789 0.731 0.677 Period 9 0.914 0.837 0.766 0.703 0.645 Period 10 0.905 0.820 0.744 0.676 0.614 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 0.592 0.500 0.424 0.361 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.229 0.205 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.368 0.290 0.182 0.145 0.116 0.093 0.160 0.125 0.099 0.078 Darind 15 0.001 0.712 0812 EFF 0.101 0215 0.117 0.220 0.110 0.102 0.109 0.001 0.065 Print Done - 6 Reference Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0.142 0.174 0.097 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.16 0.092 0.059 0.038 0.024 0.016 0.010 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% Period 1. 1.010 1.020 1.030 1.040 1.050 1.060 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 Period 4 1.041 1.082 1.126 1.170 1.216 Period 5 1.051 1.104 1.159 1.217 1.276 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 8% 10% 1.080 1,100 1.120 1.140 1.166 1.210 1.254 1.300 1.260 1.331 1.405 1.482 1.643 1.728 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.974 2.195 2.436 2.700 12% 14% 16% 18% 20% 1.160 1.346 1.561 1.180 1.200 1.392 1.440 2.986 Print Done Reference X Period 7 1.072 1.149 Period 8 1,083 1.172 1.230 1.316 1.407 1.267 1.369 1477 Period 9 1.094 1.195 1.305 1.423 1.551 Period 10 1.105 1.219 1.344 1,480 1.629 1.504 1.714 1.949 2211 2502 2.828 3185 3.883 1.594 1.851 2.144 2478 2.853 3.278 3.759 1.689 1.999 2.358 2.773 3.252 3.803 4.435 1.791 2.159 2.594 3.106 3.707 4411 5.234 cturin 4.300 5.160 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 Period 12 1.127 1.268 1.426 1.601 1.796 1.898 2.332 2.853 3479 4.226 5.117 6.178 2012 2.518 3.138 3.896 4.818 5.936 7288 8.916 7.430 ue an Period 13 1.138 1.294 1.469 1.665 1.896 2.133 2.720 3.452 4.363 5482 6.886 8.599 10.699 ann Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5474 7.138 9.266 11.974 15.407 Print Done ans Reference X Period 12 1.127 1.268 1.426 1.601 2.012 5.936 1.796 2.518 3.138 3.896 4.818 7.288 8.916 Period 13 1:138 1.294 1.469 1.665 1.886 2.133 2.720 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 3.452 4.363 5.492 6.886 6.261 7.988 3.797 4.887 5.474 7.138 8.599 10.699 10.147 12.839 11.974 9.266 15.407 Period 201 1.220 1.486 1.806 2.191 2.653 3.207 4.661 Period 25 1.282 1.641 2.094 2.666 Period 30 1.348 Period 40 2.208 1.489 1.811 2.427 3.262 3.386 4.322 3.243 4.801 7.040 6.727 9.646 13.743 19.461 27.393 95.396 6.848 10.835 17.000 26.462 40.874 62.669 4.292. 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 38.338 Print Done WC ew Reference Present Value of Annuity of $1 on Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 tion Period 6 5.795 5601 5417 5242 Period 2 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.212 3.993 3.791 3.605 5076 4917 4623 4 355 4111 4917 1.647 1.605 1.566 1.528 2.322 2.246 2.174 2.106 2.914 2.798 2.690 2.589 4.329 3.433 3.274 3.127 2.991 3 ARQ 3685 3498 3326 stion 5 estion 6 Print Done 5 Reference 3.498 3.326 3.812 3.605 3.837 4.031 4.192 4.656 4.327 4.439 4.533 4.611 3.889 3.685 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 | 4.623 4.355 4.111 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.986 9.394 3.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 4.793 4.910 5.008 ne Print Done Reference 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 5.342 4.910 4.533 6.002 5.468 5.008 4.611 6.142 5.575 5.092 4.675 5.929 5.353 4.870 4.948 Period 12 11.255 10.575 9.954 9.385 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 Period 40 32.835 27.355 23.115 19.793 17.159 5.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 4.979 Print Done Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.31 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period R 6.152 6.308 6468 6.633 6.802 6.975 7716 7336 8.115 8.536 8.977 9442 0.020 Print Done Reference VIVED w.www THIST Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 8.536 8.115 7.716 8.977 9.442 9.930 Period 7 7.214 7.434 7.662 7.898 Period 8 8.286 8.583 9.487 8.142 8.394 8.923 9.549 8.892 9.214 9.897 10.637 11.436 12.300 9.369 9.755 Period 9 10.159 10.583 11.027 11.491 12.488 13.579 14.776 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 10.089 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.808 13.486 14.07 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029. 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 Print Done Reference 27.271 30.850 34.931 39.581 36.786 42.219 48.497 43.672 59.196 50.818 51.660 60.965 72.035 32.089 37.581 43.842 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 91.025 115.380 146.628 186.688 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 249.214 342.603 471.981 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 Period 30 34.785 40.568 47.575 56.085 6639 79.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 Print Done Requirements - I 1. Compute this project's NPV using Berkner Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Berkner Industries could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $76,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $50,000 residual value at the end of Year 7. Should Berkner Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional Print Done .98 - - X Requirements the company invest in the equipment? Why or why not? 2. Berkner Industries could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $76,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $50,000 residual value at the end of Year 7. Should Berkner Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value.) the the f Print Done e. She Question 5, E12-31A (similar to) Part 1 of 4 HW Score: 14.06%, 0.98 of 7 points O Points: 0 of 1 Save (Click the icon to view the present value table.) (Click the icon to view the present value annuity K Requirement 1. Compute this project's NPV using Berkner Industries' 14% hurdle rate. Should Berkner Industries invest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Net present value