Bicycle Sprocket Industries, LLC., is deciding whether to automate one phase of its production process. The manufacturing equipment, being considered, has a six-year life and will cost $ 905,000. Projected cash inflows are as follows: Year 1 2 3 $ $ $ $ Amount 260,000 254,000 225,000 215,000 205,000 173,000 4 5 $ $ 6 Required: 1 Compute this project's NPV using Bicycle Sprocket's 16% hurdle rate. Refer to problem #1 for the tables. Should Bicycle Sprocket invest in the equipment? 2 Bicycle Sprocket Industries could refurbish the equipment at the end of six years for $ 103,000. The refurbished equipment could be used one more year, providing $ 75,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $54,000 residual value at the end of year 7. Should Bicycle Sprocket invest in the equipment and refurbishing it after six years? Hint: In addition to your answer to requirement 1, discount the additional cash outflow and inflows back to the present value