deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000. Projected net cash inflows are as follows: to view the projected net cash inflows.) to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) nents. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury invest in the equipment? table to calculate . * Requirements x present value.) - 6 Data Data Table nt value of each y Year 1 $ 263.000 250.000 Year 2 ) Year 3 226,000 1. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury invest in the equipment? 2. Cury could refurbish the equipment at the end of six years for $104,000. The refurbished equipment could be used one more year, providing $72,000 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 Cury invest in the equipment and refurbish 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) 3) Year 4 211,000 Year 5 204 000 177.000 Year 6 6) PV of cash inflows Print Done Print Done al investment mber in the edit fields and then continue to the next question spe here to search 9 U INO Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six year life and will 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 nel present value of the project (Enter any factor amounts to three decimal places, X.XXX Use parenthese Net Cash PV Factor Present Years Inflow (1.14% Value 2 3 4 Present value of each year's inflow. (n = 1) (n=2) in = 3) (n = 4 (n = 5) ins Toti PV of cash into Inimal investment 5 6 0 Enter any number in the edit fields and then continue to the next question Type here to search BH value) Calculate the NPV of the refurbishment. (Enter any factor amounts to three decimal places. X xxx, Use parentheses or a minus sign for cash outflows and for a negative net present value) Cash (outflowinflow PV Factor fi= 14%) Present Value Refurbishment at the end of Year 6 (n-6) Cash inflows in Year 7 (n=7) Residual value in-T) Net present value of the refurbishment NPV The refurbishment NPV IS to overcome the onginal NPV or the equipment Therefore the refurbishment ater Cury Industnes original decision regarding the The refurbishment provides a equipment investment Enter any number in the edit fields and then continue to the next question o 12:44 PM 8/5/2020 (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Read the requirements Cury Industries invest in the equipment have a $54.000 residual value at the end of year 7. Should Cury invest in the equipment and refurbish it after six years? (Hint in addition to your answer to Requirement discount the additional cash outflow and inflows back to the prese Requirement 2. Cury could refurbish the equipment at the end of six years for $104.000 The refurbished equipment could be used one more year, providing $72,000 of net cash inflows in year 7 Additionally, the refurbished equipment - value.) Calculate the NPV of the refurbishment (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for cash outflows and for a negative net present value) Cash PV Factor Present (outflow/intlow fi = 14%) Value Refurbishment at the end of Year 6 (n=6) Cash inflows in Year 7 (n=7) Residual value (n = 7) Net present value of the refurbishment The refurbishment provides a equipment investment NPV The refurbishment NPV IS to overcome the original NPV of the equipment. Therefore, the refurbishment alter Cury Industries' orginal decision regarding the Enter any number in the edit fields and then continue to the next question Type here to search O SI A. (40) 12:47 8/5/20