Berkner Industries is deciding whother net cash inlows are as follows to autormate one phase of its production process. The manufacturing equipment has a six year lifle and will cost $915,000 Projected EEB (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 ) Requirements Data Table Requ ner In 1. Compute this projeds NPV using Berkner Industries, 16% hurde rate Should dollar Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $264,000 252,000 $224,000 $210,000 $204,000 173,000 prese the company invest in the equipment? Why or why not? 2. Berkner Industries could refurbish the equipment at the end of si years for Net 104,000 The refurbished equipment could be used one more year, providing $78000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $53,000 residual value at the end of Year 7 Should Berkner Industries invest in the equipment and refurbish it after six years? Whycr why not? (Hint In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value) PrintDone Print Done Enter Clear All