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Cury Industries is deciding whether to automate one phase of its production prooess. The manufacturing equipment has a sb-year life and will cost $825,000. Projected

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Cury Industries is deciding whether to automate one phase of its production prooess. The manufacturing equipment has a sb-year life and will cost $825,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements Requirement 1. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury invest in the equipment? Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, Xxx Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Present Years Inflow 11 -14%) Value Present value of each year's inflow in = 1) in 2) 3 (n = 3) (n 4) 5 1 2 6 Total PV of cash inflows Initial investment 0 Net present value of the project Enter any number in the edit fields and then continue to the next question Test: Lesson 13 Homework This Question: 10 pts 5 of complete This Test 50 ps possible 1 st Help Cury Industries is decide whether to worrate one phase of the production process. The management parite and will cost $28.000. Projected rechinows are now Im Click the loon to view the projected net cash Wow) Click the lion to view Present we of State) COM The icon to view Pre We of Ordinary Aruty of the Read the ramen Investment Nel present value of the project Cury Industries Requirement 2. Cury could refurbish the agent at the end of six years for $10.000. The refurbished more could be used one more your providing 72.000 of net cashews in your doorly, there would hawa 552,000 residual value at the end of yew 7. Show Guy invest in the event and refurbisher years oint in addition to your answer toegement decor the font chaufwand Wows back to the present .0 wala) Calculate the NPV of the refurbishment (Enter any factor mounts to the decimal placesXXXX. Uw para minus wigs for cash outlows and for a negativne presentar Cash PV Factor ( foutflowinflow Refurbishment at the end of Year 6 in ) Cashindows in Your 7 (7) Residual in Nel present value of the relishment The refurbishment provides NPV. The refurbishment NPV to overcome theangal NPV at the equipment. Therefore, the return Water Cury Industrie onginal decision regarding the Enter any number in the edit fields and then continue to the next question his Question: 10 pts Dury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $925,000. Projecto Click the icon to view the projected net cash inflows.) Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements 0 Data Table a minus sign for Requirement 1. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury invest Use the following table to calculate the net present value of the project. (Enter any factor amour Net Cash PV Factor Preser Years Inflow (i = 14%) Value Present value of each year's inflow: 261,000 Year 1 $ Year 2 Year 3 1 250,000 222,000 210,000 2. Year 4 3 200,000 (n=2) (n3) In 4) (n = 5) (n = 6) Total PV of cash inflows Year 5 Year 6 173,000 5 6 Print Done 0 Initial investment Net present value of the project Enter any number in the edit fields and then continue to the next

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