Benteld Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-yoar ife and will cost $905,000. Projected net cash infows are as follows: ( Cick the icon to view the projected net cash inflows.) (Click the lcon to view the present value table.) (Cick the lcon to view the future value tabie) (Cick the ioon to view the present value annuty table) (Click the loon to view the future value annuty table) Read the reauirements Requirement 1. Compute this project's NPV using Benteld Industries' 16% hurdle rate. Should Bentfeld 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 dolar. Use parentheses or a minus sign for negative net present values ) (61,200) Net present value Benteld Industries should not invest in the equipment because its NPV is negative Requirement 2. Benteld Industries could refubish the equipment at the and of six years for $101,000. The returbished equipment could be used one more year, providing $74,000 of net cash infows in Year 7. In addition, the refubished quipment would have a $55,000 residual value at the end of Year 7. Should Benteld Industries invest in the equipmant and refurbish it aher six years? Why or why not? (Hine in addition to your answer to Requiremant 1, discount the addiional cash outfow and infows back to the present value) Calculate e addisonal NPV provided from the refurbishment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Additional NPV provided from refurbishment s $265,000 Year 1 $251,000 Year 2 $225,000 Year 3 $213,000 Year 4 $201,000 Year 5 $174,000 Year 6 Present Value of $1 6% 8% 10% Periods 1% 2% 3% 4% 5% 12% 14% 16% 18% 20% 0.962 0.877 1 0.990 0.980 0.971 0.952 0.943 0.926 0.909 0.893 0.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.794 0.751 0.712 0.675 0.641 3 0.971 0.961 0.924 0.951 0.906 0.863 0.942 0.915 0.889 0.864 0.840 O.792 0.735 0.683 0.636 0.592 0.552 0.516 O.747 0.681 0.621 0.609 0.579 4 0.888 0.855 0.823 0.784 0.482 0.567 0.519 0.476 0.437 0.402 0.822 6 0.942 0.888 0.871 0.837 0.790 0.746 0.711 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.813 0.760 0.665 0.583 0.513 0.452 0.400 0.314 0.279 7 0.933 0.354 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.350 0.287 0.237 0.195 0.162 0.135 0.319 0.257 0.208 0.168 0.137 0.896 0.804 0.722 0.650 0.585 0.527 0.429 11 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.112 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 14 0.879 0.870 0.681 0.661 0.861 0.743 0.642 0.773 0.601 0.577 0.530 0.505 0.469 0.442 0.340 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.312 0.215 0.149 0.104 0.073 0.051 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.263 0.205 0.160 0.125 0.099 0.078 0.758 15 0.555 0.481 0.037 0.026 20 0.820 0.780 0.673 0.554 0.478 0.456 0.377 0.375 25 0.610 0.742 0.552 0.672 0.453 0.295 0.012 0.007 0.231 0.142 0.174 0.097 30 0.412 0.308 0.099 0.057 0.033 0.020 0.004 40 0.307 0.208 0.046 0.022 0.011 0.005 0.003 0.001 0.001