E12-29A (similar to) Question Help Anderson Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a so-year life and will cost $905,000. Projected net cash inflows are as follows: Click the icon to view the projected not cash inflows. (Click the icon to view the present value table.) (Click the icon to view the present value annuity table (Click the icon to view the future value table.) (Click the icon to view the future value annuity table) Read the requirements Requirement 1. Compute this project's NPV using Anderson Industries 14% hurdle rate. Should Anderson Industries invest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole dolar Use parentheses or a minus sign for negative net present values.) Not present value Requirements 1. Computo this project's NPV using Anderson Industries' 14% hurdlerato Should the corrpany invest in the equipment? Why or why not? 2. Anderson Industries 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 In addition, the refurbished equipment would have a 553,000 residual value at the end of Year 7 Should Anderson Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint. In addition to your answer to Requirement 1, discount the additional cash outfow and inflows back to the prouint valuo.) Print Dono Enter any number in the add fields and then click Check Answer 3 ports remaining Clear All Check Answer Type here to search E Sustries is deciding whether to automate one phase of its production process. The and will cost $905,000. Projected net cash inflows are as follows: he icon to view the projected net cash inflows.) he icon to view the present value table.) (Click the icon to view the prese the icon to view the future value table.) (Click the icon to view the future equirements. hurdle rate. Shou & ent 1. Col ? Why or i Data Table er to the nearest v computing for negat ent value Year 1...... Year 2.. Year 3.. Year 4. Year 5...... Year 6. $265,000 $253,000 $226,000 $215,000 $204,000 $177,000 Print Done any number in the edit fields and then click Check Answer. 2-29A (similar to) Question Help derson Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a 2-year life and will cost $905,000. Projected net cash inflows are as follows: Click the icon to view the projected net cash inflows) (CH = (CH Reference -X Read the in the Required equipme 10% 16% 18% 5 ora Begin by minus si Net pret Present Value of $1 Periods 1% 2% 3% 4% 6% 8% 12% 14% 20% Period 1 0.990 0.9800971 0962 0.962 0943 0.928 0.909 0893 0877 0862 0 847 0833 Period 2 0.980 0961 0943 0925 0.907 0890 0857 0.828 0797 0789 0.743 0718 0.694 Period 3 0.971 0 942 0.815 0889 0861 0840 0794 0.751 0.7120675 0 841 0.609 0579 Period 4 0961 0904 0888 0856 0823 072 0735 0683 0636 056 0552 0516 0482 Period 5 0.951 0.006 0663 0822 0.784 0747 0681 0821 0 567 0519 0.478 0437 0.402 Period 6 09420888 0837 0.750 0.748 0705 0630 0564 507 0450 04100370 0335 Period 7 0933 087108130780 07110.885 0583 0.513 0462 0.400 0.354 0.314 0279 Period 8 0.23 0888 07800731 on 0627 0540 04670404 0361 0306 0208 0233 Period 9 09140637 0703 0703 0545 0.502 0.500 0.4240301 03080263 0225 0.194 Period 10 0906 0820074 0678 0614 0.558 0463 0380 0.322 02700227 0.191 0182 Period 11 0000 0801 0.722 0650 0585 0.527 0.42903500287 02370195 0.1020135 Period 12 0887 0.788 0701 0.626 0.557 0.407 0307 03100257 02080168 0137 0.112 Period 13 0.870 0773 0681 0.801 0.530 0.400 0300 02000229 0.182 0.145 0.110 0083 Period 14 087007580681 0.577 0.506 0.412 0.340 0203 0206 0.100 0.125 0.099 0.078 Period 15 0801 0743 0542 0556 0481 0417 0315 0239 0.183 0 140 0.108 0.081 0055 Period 20 0.820 0.673 05540456 0.377 0.312 0215 0 1490 1040073 0.061 0037 0028 Period 25 7800610 0.478 0.375 0206 0233 0.146 000 000 0038 0004 00160010 Perlod 30 0.742 0562041203080231 0.174 0000 0057 0033 0.020 0012 0.007 0.004 Period 40 0072 04530307 0200 0 12 0.007 0016 0.0020011 0.005 0.003 0.001 0.001 Print Done Enint any number in the edit fields and then click Check Answer 3 Parts remaining Clear All Check Answer Type here to search E Esc PIL Net pro dorson Industnes 15 -year life and will cost $905,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view the present valuo table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) ead the requirements - Fequire Reference quipmd Begin by minus Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 09/10862 0.952 0943 0.928 OSOB 0 893 0877 0 882 0847 0833 Period 2 1970 1942 1913 1888 1859 1833 1.783 1738 1690 16471 606 1500 1528 Period 3 2941 2884 2829 2775 2723 2673 2577 2487 2402 2322 2248 2174 2106 Period 4 3.902 3808 3717 3630 3545 3.465 3312 3.170 3,037 2914 2798 2690 2589 Period 5 4853 4713 4580 4452 43294212 3.9833 791 3 8053433 3274 3.127 2.991 Period 6 5795 5801 5417 5242 50764.917 4623 4355 4 111 3889 3885 3.498 3.328 Period 7 6.728 6472 6230 6.002 5788 6582 5208 4868 456442884039 3812 3605 Period 8 76527325 7,020 6.733 6.463 6210 5.747 5335 4.968 46394344 4.078 3837 Period 9 8 588 8.162 7 786 7435 7.10868028247 5759 53284945 4607 4303 4.031 Period 10 9471 8983 8.530 8.111 7722 7380 6710 6 145 5650 5216 4833 4.494 4.192 Period 11 10388 9.787 9253 8.780 83087887 7 139 6495 5938 5453 5029 4658 4327 Period 12 11 255 10.575 0.8549 385 8883 83847538 88146 194 58805197 4.790 4.439 Period 13 12 134 11 348 10 635 9.988 9.394 8853 7.90471036.424 5342 5342 4910 4533 Period 14 13.004 12 108 11290105639899 9.2958244 7387 6 628 8.002 5.468 5008 4611 Period 15 13 865 12 849 11938 11.118 10 3809712 8550 70066 811 6 142 5575 5.092 4575 Period 20 18.046 16351 14877 13590 12 462 114709818 8514 7 469 5.623 5329 5353 4870 Period 25 22.023 1952317 413 15.622 14 094 12783 10675 9077784388738097 5 467 4948 Period 30 25 808 22 396 19.000 17.242 15372 13.765 11 2589427 80557.003 6.177 5517 4979 Period 40 32835 27356 23.11519793 17 159 15.046 11 925 977982447105 6233 5548 4.997 Print Done Enter an 3 ports remaining Clear All Check Answer Type here to search E Es 2 55 -29A (similar to) Question Help son Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a Bar life and will cost $905,000. Projected net cash inflows are as follows: Click the icon to view the proiected net cash infowa Reference 10% 3.500 9.47 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 12% 14% 16% 18% 20% Period 1 1.000 1000 1000 1000 1000 1.000 1000 1000 1 000 1 000 1 000 1.000 1 000 Period 2 2010 2020 2030 2040 2050 2080 2080 2.100 2120 2140 2100 2 180 2200 Period 3 3.03030603001 3.122 3.153 3.184 3246 3310 3374 3440 3572 3840 Period 4 4000 4.122 4.184 4246 4310 4375 45054841 4.779 4921 5.000 5215 5388 Period 5 5.101 5204 5300 5.418 5525 5637 58876 106 8.353 8610 8877 7154 7442 Period 6.152 6 308 8 468 8.633 8.8028.975 7336 7716 8.115 8,538 8.977 9442 9830 Perlod 7 7214 7434 7602 7898 8.142 8394 8.923 10080 10730 11414 12.142 12918 Period 8.288 8583 8892 9214 9549 9807 10637 11 436 12300 13 233 14240 15327 16.499 Period 9 9388 0756 10150 10.583 11027 11 491 12.498 13679 14.778 18085 17519 19.088 20.799 Period 10 10.462 10.060 11.464 12.000 12 57813 181 14 487 15 867 17549 19337 21321 23.521 25950 Period 11 11 567 12 180 12800 13.403 14 207 14.972 18,845 18 53120.855 23.045 25.733 28.756 32.150 Period 12 12.883 13.412 14192 15028 15 91716870 18 977 21 384 24 133 27271 30 880 34 931 39 581 Period 13 13800 1468015618 15 627 17.71318.882 21 496 2452328 029 32089 38788 42.219 18.457 Period 14 4947 15 974 17.006 18 2921956021015 24215 27 975 32393 37581 43 672 50 818 59 196 Period 15 16 0717283 18.500 2002421570 23 276 27.152 31.772 37.280 43.842 51 000 60.965 12035 Period 20 22019 24 287 26870 20.778 33.000 38 786 45.762 67275 72062 91 025 115380 145.628 186688 Period 25 28243 32030 30 30 41646 47.727 5425 73 100 97 133 334 181871 249.214 342 600 47191 Period 30 32.785 40 508 47 575 56.085 68.430 79.068 113283 164.494 241.333 356.787 530312 790 968 1,181 882 Period 40 48 800 60.402 75 401 96000 120 800 154 762 250 057 442 500 787091 342 025 2380.7574,163 213 7343 858 Print Dono Enter any number in the edit fields and then click Check Answer 3 Parts Clear All Check Answer remaining Type here to search DI 47 12