E12-52B. Calculate NPV-unequal cash flows (Learning Objective 4) Fielding Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $910,000. Requirements 1. Compute this project's NPV using Fielding Industries' 16\% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Fielding Industries could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used for one more year, providing $74,000 of net cash inflows in Year 7 . Additionally, the refurbished equipment would have a $50,000 residual value at the end of Year 7 . Should the company 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 outflows and inflows back to the present value.) F12-53B. Compute IRR-unequal cash flows (T earning Objective 4)