Berkner 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 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.) 9 (Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Read the requirements. (Click Requirement 1. Compute this project's NPV using Berkner Industries' 14% hurdle rate. Should Berkner 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 dollar. Use parentheses or a minus sign for negative net present values.) Net present value $ Data Table Year 1 ....... Year 2 ........ Year 3......... Year 4............... Year 5 ....................... Year 6 .......... $265,000 $251,000 $227,000 $211,000 $203,000 $175,000 Print Done Present Value of $1 Periods| 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 10.990 | 0.980 | 0.971 | 0.962 | 0.952 | 0.943 | 0.926 10.909 10.893 | 0.877 10.862 | 0.847 | 0.833 0.980 | 0.961 | 0.943 | 0.925 10.907 10.890 10.857 10.826 10.797 10.769 | 0.743 10.718 | 0.694 0.971 | 0.942 | 0.915 | 0.889 | 0.864 | 0.840 | 0.794 | 0.751| 0.712 | 0.675 | 0.641 | 0.609 | 0.961 | 0.924 10.888 | 0.855 | 0.823 | 0.792 10.735 | 0.6831 0.636 | 0.592 | 0.552 | 0.516 | 0.482 0.951 | 0.906 | 0.863 | 0.822 | 0.784 | 0.747 10.681 | 0.621 | 0.567 | 0.519 | 0.476 | 0.437 | 0.402 0.942 | 0.888 | | 0.837 | 0.790 | 0.746 | 0.705 | 0.630 | 0.564 10.507 | | 0.456 | | 0.410 | 0.370 | 10.335 0.933 | 0.871 | 0.813 | 0.760 0.71 10.665 0.583 | 0.513 0.452 10.400 | 0.354 | 0.314 0.279 0.923 | 0.853 | 0.789 | 0731 | 0.677 10.627 10.540 | 0.467 0.404 10.351 10.305 10.266 10.233 0.914 | 0.837 | 0.766 | 0.703 | 0.645 | 0.592 | 0.500 | 0.424 10.361 10.308 10.263 | 0.225 0.194 0.905 | 0.820 | 0.744 | 0.676 | | 0.614 10.558 | 0.463 | 0.386 | 0.322 | 0.270 | 0.227 | 0.191 | 0.162 0.896 10.804 | 0.722 0.650 0.585 0.527 10.429 10.350 0.287 0.237 10.195 10.162 0.135 0.887 0.788 | 0.701 0.625 0.557 0.497 0.397 0.319 10.257 0.208 0.168 0.137 0.112 0.879 | 0.773 | 0.681 10.601 0.530 0.469 10.368 0.290 | 0.229 0.182 | 0.145 | 0.116 | 0.093 | 0.870 | 0.758 | 0.661 | 0.577 | 0.505 | 0.442 | 0.340 | 0.263 | 0.205 | 0.160 | 0.125 | 0.099 0.861 | 0.743 | 0.642 | 0.555 | 0.481 | 0.417 | 0.315 | 0.239 | 0.183 | 0.140 10.108 | 0.084 | 0.065 0.820 0.673 0.554 0.456 0.377 0.312 10.215 0.149 0.104 0.073 10.051 0.037 0.026 10.780 | 0.610 | 0.478 | 0.375 | 0.295 | 0.233 | 0.146 | 0.092 | 0.059 | 0.038 | 0.024 10.016 | 0.010 0.742 | 0.552 | 0.412 | 0.308 | 0.2311 0.174 | 0.099 10.057 10.0331 0.020 10.012 | 0.007 1 0.004 10.672 | 0.453 | 0.307 | 0.208 | 0.142 | 0.097 | 0.046 | 0.022 | 0.011 | 0.005 | 0.003 | 0.001 | 0.001 3456789mm Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 1.970 1.942 1.913 1.886 1.859 1.833 1.783 2.9412.884 2.829 2.775 2.723 2.673 2.577 3.902 3.808 3.717 3.630 3.546 3.465 3.312 4.853 4.713 4.580 4.452 4.329 4.212 3.993 5.795 5.601 5.417 5.242 5.076 4.917 4.623 6.728 6.472 6.230 6.002 5.786 5.582 5.206 7.652 7.325 7.020 6.733 6.463 6.210 5.747 8.566 8.162 7.786 7.435 7.108 6.802 6.247 9.471 8.983 8.530 8.111 7.722 7.360 6.710 10.368 9.787 9.253 8.760 8.306 7.887 7.139 12 | 11.255 10.575 9.954 9.3858.863 8.384 7.536 13 12.134 11.348 10.635 9.9869.394 8.853 7.904 13.004 12.106 11.296 10.563 9.899 9.295 8.244 13.865 12.849 11.938 11.118 10.380 9.7128.559 18.046 16.351 14.877 13.590 12.462 11.470 9.818 22.023 19.523 17.413 | 15.622 14.094 12.783 10.675 25.808 22.396 19.600 17.292 15.372 13.765 11.258 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 10% 12% 14% 0.909 0.893 0.877 1.736 1.690 1.647 2.487 2.402 2.322 3.170 3.037 2.914 3.791 3.605 3.433 4.355 4.111 3.889 4.868 4.564 4.288 5.335 4.968 4.639 5.759 5.328 4.946 6.145 5.650 5.216 6.495 5.938 5.453 6.814 6.194 5.660 7.103 6.424 5.842 7.367 6.628 6.002 7.606 6.811 6.142 8.514 7.469 6.623 9.077 7.8436.873 9.4278.055 7.003 9.779 8.244 7.105 16% 18% 0.862 0.847 1.605 1.566 2.246 2.174 2.798 2.690 3.274 3.127 3.685 3.498 4.039 3.812 4.344 4.078 4.607 4.303 4.833 4.494 5.029 4.656 5.197 4.793 5.342 | 4.910 5.468 5.008 5.575 5.092 5.929 5.353 6.097 5.467 6.177 5.517 6.233 5.548 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Future Value of $1 Periods 2% 4% 8% 20% 1.200 1.440 1.020 1.040 1.061 1.082 1.104 1.126 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 1.728 1.080 1.166 1.260 1.360 1.469 1.587 1.714 6% 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.594 1.689 1.791 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 1.149 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 1.851 1.340 1.407 1.477 1.551 1.629 1.999 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 2.358 2.159 2.594 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 26.462 50.950 188.884 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 19.461 40.874 85.850 378.721 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 2.332 2.518 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 38.338 95.396 237.376 1,469.772 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 2.720 2.937 3.172 6.176 7.288 8.599 10.147 11.974 2.653 3.386 4.322 7.040 3.207 4.292 5.743 10.286 4.661 6.848 10.063 21.725 27.393 62.669 143.371 750.378 Future Value of Annuity of $1 Periods 1% 1.000 2.010 8% 1.000 2.080 3.246 4.506 5.867 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 12% 1.000 2.120 3.374 4.779 6.353 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.436 13.579 15.937 6% 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 11.491 13.181 14.972 16.870 18.882 21.015 23.276 36.786 54.865 79.058 154.762 7.336 8.923 10.637 12.488 14.487 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 5.066 5.215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 36.786 42.219 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 790.948 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 14.207 15.917 17.713 19.599 21.579 33.066 47.727 66.439 120.800 16.645 18.977 21.495 24.215 27.152 45.762 73.106 113.283 259.057 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 18.531 21.384 24.523 27.975 31.772 57.275 98.347 164.494 442.593