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1) should or shpuld not

2) positive or negative

3)positive or negative

4) large or not large enough

5)should or shpuld not

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St. Germaine Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a year life and will cost $900,000. Projected net cash inflows are as follows: Click the icon to view the projected net cashindows) (Click the loon to view the present at table) Click the icon to view the present value annuity table) (Click the icon to view the ture value table) (Click the icon to view the fure value arvuty table) Requirement 1. Compute this pas NPV using St Germaine Industrie 14% hurdle rate. Should St Germaine Industries invest in the equipment? Why or why not? Begin by computing the projecte NPV (not present valm) (Round your answer to the nearest whole color. Une parentheses or a minus sign for negative net present values) Net present values St Germaine Industries mest in the equipment because it's NPV Requirement 2. St Germaine Industries could retutish the equipment at the end of six years for $104.000. The refurbished equipment could be used one more year, providing $78,000 of net cash inflows in Year 7. In addition, the relatished gent would have a $50.000 residual value at the end of Year 7. Should St Germaine Industries invest in the equipment and refurbith her six years? Why or why not? Mint. In addition to your newer to Requirement discount the additional cash outflow and whows back to the present value) Calculato the lion provided from the matutishment (Round your answer to the nearest whole dolu. Une parents mission for negative nel present values) Action provided from the The refurbishment provides a NPV. The returbishment NPVIS to overcome the original NPV of the event. Therefore, the tubishment ter St Germaine Industries original decision regarding the periment - X i Data Table Year 1... $260,000 Year 2... $252,000 ea Year 3... $228,000 $212,000 eg Year 4.... Year 5..... $200,000 eg Year 6 $173,000 e Print Done t. cequirement 2 St Germain Present Value of $1 Periods 1 2 3 4 5 8% 0.926 0.857 0.794 0.735 0.681 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 10% 0.909 0.826 0.751 0.683 0.621 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 20% 0.833 0.694 0.579 0.482 0.402 6 7 0.711 1% 2% 0.990 0.980 0.980 0.961 0.971 0.942 0.961 0.924 0.951 0:906 0.942 0.888 0.933 0.871 0.923 0.853 0.914 0.837 0.905 0.820 0.896 0.804 0.887 0.788 0.879 0.773 0.870 0.758 0.861 0.743 0.820 0.673 0.780 0.610 0.742 0.552 0.672 0.453 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.577 0.555 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 8 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.665 0.677 0.627 0.645 0.592 0.614 0.558 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.377 0.312 0.295 0.233 0.231 0.174 0.142 0.097 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 on 0.335 0.279 0.233 0.194 0.162 10 11 12 13 14 15 0.722 0.701 0.681 0.661 0.642 0.429 0.397 0.368 0.237 0.208 0.182 0.160 0.140 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 0.340 0.315 20 25 30 40 0.554 0.478 0412 0.307 0.456 0.375 0.308 0.208 0.215 0.146 0.099 0.046 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.005 0.051 0.024 0.012 0.003 0.037 0.016 0.007 0.001 0.026 0.010 0.004 0.001 Reference Periods 20% 1200 1440 1 2 4% 1.040 1.082 1.125 1.170 1.217 12% 1.120 1.254 1.405 1.574 1.762 1.728 14% 1.140 1.300 1.482 1.689 1.925 3 4 1% 1.010 1.020 1.030 1041 1.051 1.062 1.072 1,083 1.094 1.105 5 Future Value of $1 6% 8% 1.080 1.080 1.124 1.166 1.191 1.200 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 2159 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 5% 1.050 1.103 1.158 1216 1276 1.340 1.407 1.477 1.551 1,629 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 6 1.974 2.211 8 9 10 10% 1.100 1.210 1.331 1464 1.611 1.772 1.949 2.144 2358 2.594 2853 3.138 3.452 3.797 4.177 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.685 1.732 1.801 2.196 2.502 2853 3.252 3.707 4226 4.818 5.492 6.261 7.138 16% 1.160 1.346 1.561 1.811 2.100 2436 2826 3278 3.803 4411 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 2288 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 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 11 12 13 14 15 1.384 1426 1.469 1.513 1.558 1.710 1.796 1.886 1.980 2079 1.116 1.127 1.138 1.149 1.161 additia Ir to 2074 2488 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 2.332 2.518 2720 2.937 3.172 4.661 6.848 10.063 21.725 1.898 2012 2.133 2.261 2.397 3.207 4292 5.743 10286 20 25 30 40 1.220 1.282 1.348 1.489 1.806 2.094 2427 3262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 6.727 10835 17.449 45.259 9.646 17.000 29.960 93.051 13.743 26.462 50.950 188.884 final de Periods 12% 0.893 1.690 2.402 3.037 3.605 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 6 7 8 9 10 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 2.941 2.884 2.829 2.775 2.723 2673 2.577 2487 3.902 3,808 3.717 3.630 3.546 3.465 3.312 3.170 4,853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.86B 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 13.00412.106 11.296 10.563 9.899 9.295 8.244 7.367 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 25,808 22 396 19.600 17.292 15.372 13.765 11.258 | 9.427 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.623 6.873 7.003 7.105 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 $78,000 why not? is! al and 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 7.469 7.843 8.055 8.244 11 12 13 14 15 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 bis 5.929 6.097 6.177 6.233 20 25 30 40 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 refu Print Done Periods 1 2 3 4 5 4% 1.000 2.040 3.122 4.246 5.416 6 7 8 9 10 1.000 2010 3.030 4,060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 2% 1.000 2020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24 297 32.030 40.568 60.402 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11464 12.808 14.192 15.618 17.086 18 599 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2060 2080 2.100 3.153 3.184 3.246 3310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11436 11.027 11.491 12.488 13.579 12.578 13.181 14487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.496 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 45.762 57 275 47.727 54 865 73.106 98.347 66.439 79.058 113.283 164.494 120.800 154.762 259.057 442.593 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18 292 20.024 29.778 41.646 56.085 95.026 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.656 24.133 28.029 32.393 37.280 72.052 133.334 241.333 767.091 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2200 3.440 3.506 3.572 3.640 4.921 5.066 5215 5.368 6.610 6.877 7.154 7.442 8.536 8.977 9.442 9.930 10.730 11.414 12.142 12 916 13.233 14.240 15.327 16.499 16.085 17.519 19.086 20.799 19.337 21,321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32 089 36.786 42 48.497 37.581 43.672 50.818 59.196 43.842 51.660 60.965 72.035 91.025 115.380 146.628 186.688 181.871 249.214 342.603 471.981 356.787 530.312 790.948 1.181.882 1,342.025 2.360.757 4.163.2137.343.858 11 12 13 14 15 20 25 30 40 22.019 28.243 34.785 48.886 26.870 36.459 47.575 75.401 Print Done