ABC Corp has an opportunity to upgrade a plece of equipment at a cost of $480,000. The new equipment is expected to generate the following cash flows: ABC Corp assumes a hurdle rate of 14%. ABC Corp's manager believes there will be an ability to refurbish the equipment at the end of the equipment's 6-year life. The refurbishment is expected to add one year of useful life to the equipment and will cost $50,000. If the equipment is not refurbished, the salvage value will be $0 at the end of year 6 . If the equipment is refurbished, it will generate $85,000 in cash flows n year 7 and the salvage value will be $40,000 at the end of year 7 . By how much does the IPV of the project change if the company undertakes the refurbishment as compared to isposing of the machine at the end of year 6 ? ote: Your calculated answer may vary by $100 from the listed answers depending on your culation method (i.e., financial calculator vs. PV table). Note: Your calculated answer may vary by $100 from the listed answers dependin calculation method (P.e, financial calculator vs, PV table). Present Value of ist Present Value of Annuity of $1 : Present Value of Annuity of $1 : NPV increases by $27,200 with refurbishment NPV increases by $30,000 with refurbishment NPV increases by $11,200 with refurbishment NPV decreases by $27,200 with refurbishment NPV decreases by $11,200 with refurbishment