BerknerBerkner Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000. Projected net cash inflows are as follows:

Save Homework: Chapter 12 Homework Score: 0.71 of 1 pt %E12-29A (similar to) 10 of 22 (16 complete) HW Score: 69.36%, 15.26 of 22 pts Question Help Berliner Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000. Projected net cash inflows are as follows: E (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 Berkner Industries' 16% 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 $ 0 Data Table 1 Requirements Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $263,000 $252,000 $222,000 $212,000 $205,000 $178,000 1. Compute this project's NPV using Berkner Industries' 16% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Berkner Industries could refurbish the equipment at the end of six years for $102.000. The refurbished equipment could be used one more year, providing $73.000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $50,000 residual value at the end of Year 7. Should Berkner Industries Invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional cash outfiow and Intions back to the present value) ......... . ... Print Done Print Done Homework: Chapter 12 Homework Save Score: 0.71 of 1 pt 10 of 22 (16 complete) HW Score: 69.36%, 15.26 of 22 pts Question Help Reference 000. Projected net cash inflows are as follows: Periods Reference 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 Periods 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.486 1.641 1.811 2.208 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 4% 1.040 1.082 1.125 1.170 1.217 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 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1.419 1.587 1.504 1.714 1.594 1.851 1.689 1.999 1.791 2.159 1.898 2.332 2.012 2.518 2.133 2.720 2.261 2.937 2.397 3.172 3.207 4.661 4.292 6.848 5.743 10.063 10.286 21.725 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 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 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 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 27.393 62.669 143.371 750.378 20% 1.200 1.440 1.728 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 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.820 0.780 0.742 0.672 2% 3% 4% 0.980 0.971 0.962 0.961 0.943 0.925 0.942 0.915 0.889 0.924 0.888 0.855 0.906 0.863 0.822 0.888 0.837 0.790 0.871 0.813 0.760 0.853 0.789 0.731 0.837 0.766 0.703 0.820 0.744 0.676 0.8040.722 0.650 0.788 0.701 0625 0.773 0.681 0.601 0.758 0.661 0.577 0.743 0.642 0.555 0.673 0.554 0.456 0.610 0.478 0.375 0.5520.412 0.308 0.453 0.307 0.208 Present Value of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.8570.826 0.864 0.840 0.794 0.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.621 0.746 0.705 0.630 0.564 0.711 0.665 0.583 0.513 0.677 0.627 0.540 0.467 0.6450.5920.500 0.424 0.614 0.558 0.463 0.386 0.585 0.527 0.429 0.350 0.557 0.497 0.397 0.319 0.530 0.469 0.368 0.290 0.505 0.442 0.340 0.263 0.481 0.417 0.315 0.239 0.377 0.3120.215 0.149 0.295 0.233 0.146 0.092 0.231 0.174 0.099 0.057 0.142 0.097 0.046 0.022 12% 14% 16% 18% 20% 0.893 0.877 0.862 0.847 0.833 0.797 0.769 0.7430.7180.694 0.712 0.675 0.641 0.609 0.579 0.636 0.592 0.552 0.516 0.482 0.567 0.519 0.476 | 0.437 0.402 0.507 0.456 0.410 0.370 0.335 0.452 0.400 0.354 0.3140.279 0.404 0.3510.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.1910.162 0.287 0.237 0.195 0.162 0.135 0.257 0.208 0.168 0.137 0.112 0.229 0.1820.145 0.116 0.093 0.205 0.160 0.125 0.099 0.078 0.183 0.140 0.1080.084 0.065 0.104 0.073 0.051 0.037 0.026 0.059 0.038 0.024 0.0160.010 0.033 0.0200.0120.007 0.004 0.0110.005 0.003 0.001 0.001 Print Done 40 Print Done Enter any number in the edit fields and then click Check Answer. 2 parts remaining Clear All Check Answer Homework: Chapter 12 Homework Save Score: 0.71 of 1 pt 10 of 22 (16 complete) HW Score: 69.36%, 15.26 of 22 pts Question Help i Reference 10.000. Prajected net cash inflows are as follows: Periods 2.00 12% 1.000 2 120 1.374 4.779 3.440 3840 Reference 4 184 5309 4.641 2.506 5086 6877 4921 5101 5.416 8.353 & 115 7414 11414 Present Value of Annuity of $1 9214 Future Value of Annuity of $1 4% 5% D 8 % 10% 1.000 1.000 1.000 1.000 1.000 2.050 2000 2.100 3.122 2.153 3.124 3246 2.310 4310 4.375 4.508 5.526 5.637 5.867 6.105 6.900 6.975 7336 7.716 7.999 2142 8.394 8923 9.457 9.549 9.897 10.837 11 436 10.583 11.007 11.491 12 488 13.579 12.006 12.578 13.181 14.487 15.937 13.496 14207 14 922 16.645 18.531 15 026 15.917 16.870 18.977 21384 16.627 17713 18 882 21,495 24.522 1 292 19.599 21 015 24.215 27 975 20.024 21 579 23 278 27.152 31.772 29 778 33066 38 786 45762 57 275 41.646 47.727 54 865 73.106 98.347 58,085 88 419 79068 113.22 164 494 96.026120.800 154.762 259,057 442.590 18% 1% 2% 3% 1000 1.000 1000 2010 2020 2020 3.030 3.060 3.091 4.060 4.122 5.204 6152 6.300 6468 7214 7662 & 208 9.542 8.892 9389 9.755 10 159 10.482 10 960 11484 11.567 12. 169 12 808 12 683 13.412 14 192 13 809 14.620 15.618 14 947 15.974 17.0AB 16.097 17 293 18.599 22019 24 297 26870 28243 32.000 38 459 34.785 40 56847575 47575 48.8A660.402 75.401 2045 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.100 2.200 3.572 5215 5.368 6.610 7.154 7.442 8.526 8.977 9442 9.900 10.730 12.142 12.916 13233 14.240 15.327 16 496 16065 17.519 19 0BB 20.799 19337 23.521 25.969 23045 25.733 28.755 32.150 27 271 20.950 34.921 24591 32 ceg 26.788 42 219 48 497 37 581 43.672 50 818 59 196 43.842 51.880 60.965 72005 91.025115380146 628 186628 181.871 249.214 342 603 471 set 356 787 520.312 790.943 1,181 882 1,342.025 2.360.7574 163.2137.343.858 21321 1913 1586 2206 3.717 3.466 10089 12 300 14.778 17549 20655 24.133 28.029 32 33 37.280 72.052 133.334 241,383 787.091 2174 2890 5.601 6.472 7578 7020 3% 4% 5% 6% 8% 10% 12% 14% 16% 10.952 0.943 0.926 0.909 0.698 1.885 1.859 1.800 1.783 1735 1.690 2.941 2.884 2.629 2775 2.723 2.873 2.577 2.487 2.402 2.322 3.630 3.545 3.312 3.170 3.037 4.853 4.580 4.452 4.329 3.791 5.417 5.242 8.230 8.733 7.786 7.435 8.530 8.111 9253 8.760 8.305 9.96493858.883 11.348 10.635 9.988 9.394 8.850 13.004 12.106 11.298 10.563 9.899 9.295 8.244 7.3676.628 6.002 13.855 12.849 11.938 11.118 10.360 9.712 8.559 7.605 6.811 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4698.623 22.023 19.523 17.413 15.822 14,094 12.783 10,675 9,07778436.873 25.08 22.396 19 600 17.292 15.372 13.785 11.250 9.4278.0567.0036.177 32.835 27,355 23.115 19.793 17.159 15.046 11.925 9.779 | 8.244 7.105 6.233 9.16 8.382 -0.576 8.384 Print Done 5.142 4.948 4.979 30 40 5517 Print Done Enter any number in the edit fields and then click Check Answer 3 remaining Clear All Check