Accounting

Petal Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000. Projected net cash inflows are provided Requirement Compute this project's NPV using Petal's 17% hurdle rate Place Answer in Blue cells Inflows Year 1 $ 263,000 Net Present Value Present Year 2 Year 3 Year 4 Year 5 Year 6 $ 420,000 $ 223,000 $ 211,000 $ 201,000 150,000 Year Cashflow Value 0 $ ( 1$ 263,000 $ 224,786 2 (905,000) $ (905,000 4 Hurdle Rate 17% NPV =