Eon Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. 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.) 3 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Compute this project's NPV using Eon's 16% hurdle rate. Should Eon 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, X.XXX. Use parentheses or a minus sign for a negative net present value.) Present Net Cash Inflow PV Factor (i = 16%) i Data Table Years Value Present value of each year's inflow: = (n = 1) N 5 Year 1 $ Year 2 5 Year 3 5 265,000 250,000 224,000 210,000 200,000 178,000 ch (n = 5) Year 4 Year 5 Year 6 o (n = 6) Total PV of cash inflows Initial investment Print Done Net present value of the project Enter any number in the edit fields and then continue to the next question. i Reference Eon Industries is deciding whether to automate one phase of its production process. The manufa (Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of $1 table.) 9 (Click the icon to view Present Va Read the requirements. Periods Requirement 1. Compute this project's NPV using Eon's 16% hurdle rate. Should Eon invest int Use the following table to calculate the net present value of the project. (Enter any factor amount Net Cash PV Factor Present Years Inflow (116%) Value Present value of each year's Inflow: 1 (n = 1) 2 (n=2) (n = 3) (n = 4) (n = 5) (n=6) Total PV of cash inflows 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.811 0.003 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 0.888 0.906 0.863 0.998 0.837 0.871 0.813 0.853 0.789 0.837 0.766 0.820 0.744 0.8040.722 0.788 0.701 0.773 0.691 0.758 0.861 0.743 0.642 0.7280.623 0.714 0.605 0.700 0.587 0.570 0.673 0.554 0.660 0.538 0.647 0.522 4% 0.962 0.925 0.899 0.855 0.822 0.790 0.760 0.731 0.703 0.876 0.650 0.625 0.801 0.577 0.565 0.534 0.513 0.494 0.475 0.456 0.439 0422 5% 6% 0.962 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 0.746 0.705 0.711 0.665 0.677 0.627 0.645 0.592 0.614 0.568 0.585 0.527 0.557 0497 | 0.530 0.469 0.505 0.442 0.481 0.417 0.458 0.394 0.436 0.371 0.416 0.350 0.396 0.331 0.377 0.312 0.359 0294 0.342 0.278 Present Value of $1 7% 8% 9% 0.935 0.926 0.917 0.873 0.8570.842 0.816 0.794 0.772 0.763 0.735 0.708 0.713 0.866 0.630 0.596 0.623 0.583 0.547 0.582 0.540 0.502 0.544 0.500 0.460 0.508 0.463 0.422 0.475 0.429 0.388 0.444 0.397 0.356 0415 0.368 0.326 0.398 0.340 0.299 0.362 0.315 0275 0.339 0292 0.252 0.317 0.270 0 231 0.296 0 250 0 212 0.277 0232 0.194 0.258 0215 0.178 0242 0.199 0.164 0226 0.184 0.150 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.396 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.135 0.123 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 0229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.093 0.083 14% 15% 0.877 0.870 0.769 0.756 0.875 0.658 0.592 0.572 0.519 0.497 0.456 0.432 0.400 0.376 0.351 0.327 0.308 0.284 0.270 0.247 0.237 10.215 0.208 0.187 0.182 0.163 0.160 0.141 0.140 0.123 0.123 0.107 0.108 0.093 0.095 0.081 0.083 0.070 0.073 0.061 0.064 0.053 0.056 0.046 16% 0.862 0.743 0.841 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.686 0 Initial investment Net present value of the project Enter any number in the edit fields and then continue to the next question. Print Done 0 Reference Eon Industries is deciding whether to automate one phase of its production process. The manufa (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 Val Read the requirements Requirement 1. Compute this project's NPV using Eon's 16% hurdle rate. Should Eon invest in Use the following table to calculate the net present value of the project. (Enter any factor amount 3.312 Net Cash Inflow PV Factor (i = 16%) Present Value Years Present Value of Ordinary Annuity of S1 Periods 1% 2% 3% 4% 8% 9% 10% 12% 14% 15% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 1.9131.886 1.859 1.833 1.80B 1.783 1.759 1.736 1.6901.647 1.626 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.240 3.170 3.037 2.914 2.855 4.8534.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 8.566 8.162 7.788 7.4357.100 6.802 6.515 6.247 5.995 5.759 5.328 4.948 4.772 | 9.471 8.983 | 8.530 3.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 10.368 9.787 9.2538.760 8.306 7.887 7.499 7.139 6.8056.495 5.93B 5.453 5.234 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.538 7.161 | 6.814 6.1945.660 5.421 12.134 11.348 10.635 9.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.3676.628 6.0025.724 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 14.718 13.578 12.561 11.652 10.838 10.1069.447 8.851 8.313 7.824 6.9746.265 5.954 15.562 14 292 13.166 12.166 11.274 10.477 9.763 9.1228.544 8.022 7.120 6.373 6.047 16.398 14.992 | 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 17 226 15.678 14.32413.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 19.560 17.668 15.937 14.451 13.163 12.042 11.061 10.2019 .442 8.7727.645 6.743 6.359 Present value of each year's inflow: (n = 1) (n=2) (n = 3) (n = 4) (n = 5) (n = 6) 2 3 4 5 6 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.669 5.749 5.818 5.877 5.929 5.973 6.011 Total PV of cash inflows Initial investment Net present value of the project Enter any number in the edit fields and then continue to the next question. Print Done Eon Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. 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. U initial investment Nel present value of the project Eon Industries invest in the equipment Requirement 2. Eon could refurbish the equipment at the end of six years for $105,000. The refurbished equipment could be used one more year, providing $76,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $53,000 residual value at the end of year 7. Should Eon 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.) 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 Present PV Factor (i = 16%) (outflow) /inflow 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 NPV. The refurbishment NPV is decision regardina the equipment investment. to overcome the original NPV of the equipment. Therefore, the refurbishment alter Eon Industries' original Enter any number in the edit fields and then continue to the next