Company has an opportunity to upgrade a piece of equipment at a cost of $430,000. The new equipment is expected to generate the following cash flows: Year 1 $80,000 Year 2 $150,000 Year 3 $50,000 Year 4 $140,000 Year 5 $62,000 Year 6 $56,000 Company X assumes a hurdle rate of 14%. Company Xs manager believes there will be an ability to refurbish the equipment at the end of the equipment's 6-year life. The refurbishment is expected to add one year of useful life to the equipment and will cost $50.000. If the equipment is not refurbished, the salvage value will be so at the end of year 6. If the equipment is refurbished, the salvage value will be $40,000 a the end of year 7. What is the NPV of just the refurbishment, assuming the cash inflow in year 7 is $85,000? Periode 1096 1296 0.900 0.893 0.877 0.862 2 0.826 0.797 0.769 0.743 3 0.751 0.712 0.675 0.641 4 0.683 0.636 0.592 0.552 5 0.621 0.567 0.519 0.476 6 0.564 0.507 0.456 0.410 7 0.513 0.452 0.400 0.354 00 8 0.467 0.404 0.351 0.305 9 0.424 0.361 0.308 0.263 10 0.386 0.322 0.270 0.227 Present Value of Annuity of $1: Periods 10% 12% 14% 16% 6 4.355 4.111 3.889 3.685 7 4.868 4.564 4.288 4.039 8 5.335 4.968 4.639 4.344 9 5.759 5.328 4.946 4.607 10 6.145 5.650 5.216 4.833 P.IV 7.00 O $11,200 O $27,200 $24,500 O $50,000