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Bentfield Industries is deciding whether to automate one phase of its production process. The manufacturing equipr cash inflows are as follows: ( Click the icon

Bentfield Industries is deciding whether to automate one phase of its production process. The manufacturing equipr
cash inflows are as follows:
(Click the icon to view the projected net cash inflows.)
(Click the icon to view the present value table.)
(Click the icon to view the present value annuity table
(Click the icon to view the future value table.)
(Click the icon to view the future value annuity table.)
Read the requirements.
Requirement 1. Compute this project's NPV using Bentfield Industries' 14% hurdle rate. Should Bentfield Industries
Begin by computing the project's NPV (net present value).(Round your answer to the nearest whole dollar. Use par
Net present value
Bentfield Industries
invest in the equipment because its NPV is
Requirement 2. Bentfield Industries could refurbish the equipment at the end of six years for $100,000. The refurbi,
$74,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $51,000 residual value a
Data table
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.)
Calculate the additional 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
The refurbishment provides a
NPV. The refurbishment NPV is
to overcome the original NPV of the equipment. Therefore, the refurbishment
alter Bentfield Industries' original decision regarding the equipment investment.
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