are as follows Eon Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $900,000 Projected net Click the icon to view the projected net cash inflows) Click the icon to view Present Value of 51 table Click the icon to view Present Value of Ordinary Annuity of S1 table) Read the tecurenta ti Requirement 1. Compute this project's NPV using Eon's 16% hurdlerate Should Eon 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, XXXX Use parentheses or a minus sign for a nega present value) The manufacturing equipment has a six-year life and will cost $900,000. Projected net cash inflows Drecent Walmerdinan Anni lits 1 table) Year 1 $ 262,000 253,000 Year 2 Year 3 225,000 210,000 Year 4 Year 5 205,000 177,000 Year 6 Print Done e additional cash outflow and inflows back to the question 10% Present Value of $1 Periods 1% 3% 2% 5% 4% 6% 7% 8% 9% 16% 12% 18% 14% 15% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.893 0.877 0.833 0.870 0.862 0.847 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 0.694 0.756 0.743 0718 Period 3 0.971 0942 0.915 0.889 0.864 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 0.5190.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.6660.630 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 0.3540 314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0544 0.500 0.460 0.424 0.3610 308 0.284 0.263 0225 0.194 Period 10 0905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.2470 227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.5570.497 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 0.1820.163 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 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.1400.123 0.1080.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0218 0.163 0.123 0.1070.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.1980.146 0.1080.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.199 0.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0647 0.522 0.422 0.3420278 0226 0.184 0.15001230.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0.507 0.406 0326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0247 0.197 0.158 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 Present Value of Ordinary Annuity of 1 Perods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.9090.893 0.877 0.870 0.862 0 847 0833 Period 2 1970 1.942 1913 1.886 1859 1833 1.808 1.783 1759 1736 1.6901.647 1.626 1605 1.566 1528 Period 3 2941 2.884 2829 2775 2.723 2.673 2624 2.577 2 531 2.487 2402 2322 2283 2246 2174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.3873,312 3.240 3.170 3.037 29142.855 2.798 2690 2.589 Period 5 4.853 4.713 4580 4.452 4.3294212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.2743.127 2.991 Period 6 5.795 5.601 5.417 5242 5076 4.917 4.767 4623 44864.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 7 6.728 6.472 6230 6.002 5 786 5582 5.389 5.206 5,033 4.8684.564 4.288 4160 4.039 3.812 3.605 Period 8 7.652 7325 7020 6.733 6.463 62105.971 5.7475.535 5335 4.968 4.639 4.487 4.344 4.078 3.837 Period 9 8.566 8.162 7786 7.435 7 108 6.802 6.515 6 247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 73607 024 6710 6.418 6.145 5.650 5 216 5,019 4.833 4 494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7 887 7499 7 139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4327 Period 12 11.255 10.575 9.954 9,385 8.8638.384 7.9437.5367 1616.814 6.1945.660 5.421 5.197 4793 4.439 Period 13 12 134 11.348 106359.986 9.3948.8538.358 7.9047 487 7.103 6.424 5.842 5.583 5 342 4910 4533 Period 14 13.004 12.106 11 296 10.563 9.899 9.295 8.745 8.244 778673676.628 6.002 5.724 5.468 5008 4.611 Period 15 13 865 12 849 11.938 11.118 10 380 9.712 9.108 8.559 8061 7.6066.8116.142 5.8475.575 5.092 4.675 Period 16 14.718 1357812581 11 652 10.838 10.106 9.447 8.8518 313 7 824 6.9746.265 59545,669 5162 4730 Period 17 15562 14 292 13.166 12 1681127410.477 9763 9.122 8544 802271206373 6.047 5.749 5.222 4.775 Period 18 16 398 14.992 13754 12 659 11690 10 828 10059 93728756 8201 72506 467 6.128 5.818 5.2734.812 Period 19 17 226 15 678 14,324 13.134 12.08511.158 10 336 9.604 8.95083657366 6.5506.1985.87753164 844 Period 20 18.046 16.351 14 877 13.5901246211470 10.5949 818 9.129 8.514 7.469 6.623 6 259 5.92953534 870 Period 21 18 857 1701115.415 14.029 12821 11.764 10 836 10.0179292 8.649 75626.687 6312 5.973 5 384 4.891 Period 22 19 660 17 658 15937 14.451 13.163 12.042 11 061 10.201 9442 8.772 7.645 6.743 6.359 6011 Period 23 20.456 18 292 16444 14 857 13.489 12.303 11 272 10.371 9.5808 8837718 6.792 6.399 6.044 5.410 4.909 5.432 4.925 Period 24 21 243 18.91416 936 15 247 13 79912.550 11469 10.529 9.7078.9857 784 6835 6.434 6073 Period 25 22.023 19.5231741315.6221409412.783 11.654 10.675 9 A2 9077 5.451 4937 7242 R970 RAA R07 CA 14 Read the requirements Requirement 1. Compute this project's NPV using Eon's 16% hurdle rate Should Eon 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, Xxxx Use parentheses or a minu 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: (n = 4) Year 5 Present value of each year's inflow: (n = 5) Year 6 Present value of each year's inflow. (n = 6) Total PV of cash inflows Year Initial investment Net present value of the project Total Of cash IntIOWS Year 0 Initial investment Net present value of the project Eon Industries invest in the equipment. Requirement 2 inflows in year years? (Hint: In he equipment at the end of - rbished equipment would ha er to Requirement 1, discour ES should -I---IL- -4 / Enter any numb should not ind then continue to the ne Year 0 Initial investment Net present value of the project Eon Industries invest in the equipment Requirement 2. Eon could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, pra intlows in year 7. Additionally, the refurbished equipment would have a $51,000 residual value at the end of year 7 Should Eon invest in the equipmen years? (Hint: In addition to your answer to Requirement 1 chiscount the additional cash outflow and inflows back to the present value) Calculate the NPV of the refurbishment (Enter any factor amounts to three decimal places, Xxxx Use parentheses or a minus sign for cash outflows value.) Cash PV Factor i (outflow linflow 16%) Present Value Refurbishment at the end of Year 6 (n = 6) Cash inflow in Year 7 (n = 7) Residual value (n=7) Net present value of the refurbishment me end of six years for $102,000. The refurbished equipment could be used one more year, providing $75,000 of net cash would have a $51,000 residual value at the end of year 7. Should Eon invest in the equipment and refurbish it after six 1, discount the additional cash outflow and inflows back to the present value.) Cash (outflow)/inflow PV Factor (i = 16%) Present Value Refurbishment at the end of Year 6 (n = 6) Cash inflows in Year 7 (n = 7) Residual value (n = 7) Net present value of the refurbishment TL Refurbishment at the end of Year 6 (n = 6) Cash inflows in Year 7 (n = 7) Residual value (n = 7) Net present value of the refurbishment The refurbishment provides a Thing VNPV. The refu Valter Eon Industri rega Enter any number in the edit negative tinue positive t NPV. The refurbishment NPV is to overcom I decision regarding the equipmer then continue to the next ques large enough not large enough end of Year 6 (n = 6 7 (n = 7) ) should s PC the refurbishment should not vides a V NP ses Valter Eon Industries' original dec ething