- FUPI IL FIUITICVUIN Score: 0 of 1 pt 3 of 5 (4 complete) E12-29A (similar to) Monachine Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a s yarife and will cost $900,000. Projected retshows are as follows (Click the icon to view the projected net cash inflows) (Click the icon to view the present value table) Click the icon to view the present value annuity table) Click the loon to view the future valuable) (Click the icon to view the future value annuity table.) Read the requirements Requirement 1. Compute this project's NPV using Monachino Industries 16% hurdio rate. Should Monachino Industries nvest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole dollar Use parentheses or a minus sign for negative net present values.) Net present values Enter number in the edited and then click Check Answer parts Chapter 1 tot con to view the present value annuity table.) Data Table Year 1....... Ven Year 2 Year 3....... Year 4....... $260,000 $250,000 $222,000 $213,000 $202,000 $176,000 Year 5.... Year 6... Print Done Clear All nework 3 of 5 (4 complete) Reference Periods % 0.971 0.943 0.915 0.888 0.863 0.837 01813 0.789 0.766 4% 0.962 0.925 0.889 0.855 0.822 0.790 0.780 Present Value of $1 5% 6% 1 8 % 10% 0.952 0.943 0.926 0.909 0.907 0.890 0.857 0.826 0.864 0.840 0.7940.751 0.823 0.792 0.735 0.683 0.784 0.747 0.681 0.705 4 12% 0.893 0.797 0.712 0606 0.567 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 0871 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 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.456 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.665 14% 16% 0.877 0.862 0.769 0.743 0.675 0.641 0.592 0.552 0.519 0476 0.410 0.354 0.305 0.308 0.263 0.270 0227 0.237 0.208 0.168 0.182 0.145 0.160 0.073 0.038 0.024 0.0200012 0.400 0558 10 11 019, 0.162 0.137 0.116 0.099 0.125 0.701 0.681 0.661 0.642 0.554 0.478 0.412 0.555 0.456 0.375 0.308 0.140 0.497 0469 0.417 0.312 0.233 0.146 0.1740099 0,051 0.377 0.295 0231 0.092 0057 0.104 0.059 0.033 0.016 0.007 30 0.004 Print Done Reference Future Value of $1 Periods 14% 5% 12% 18% 20% 1200 2 LRS 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1220 1.282 1.348 2% 1.020 1.040 1.061 1.082 1.104 1.128 1.149 1.172 1.195 1219 1243 1.288 1.294 1.319 1.346 1.486 1.641 1.811 3% 1.030 1.061 1.093 1.126 1.159 1.194 1 230 1267 1.305 1.344 1384 1426 1469 1.513 1.558 1.806 2094 2427 11.040 11.082 1.125 1.170 1.217 1265 1.316 1.369 1.423 1.480 1.539 1.601 1.865 1.732 1.801 5% 1.050 1.103 1.158 1.216 1 276 1.340 1.407 1477 1.551 1.629 1.710 1.796 1.886 1.980 2079 2.653 3.386 4.322 1.060 1.124 1.191 1.262 1.338 1.419 1.504 1.504 1.689 1.791 8% 10% 14% 16% 1.080 1.100 1.120 1.140 1.160 1.180 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.260 1.331 1405 1.482 1.561 1.643 1.728 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1469 1.611 1.762 1.925 2.100 2288 1.587 1.772 1.974 2.195 2438 2.700 2008 1.714 1.949 2211 2502 2828 3.185 3.583 1.851 2.144 2476 2853 3.278 3.759 4.300 1.999 2358 2.773 3252 3.803 4.435 5.160 2.159 2.594 3.106 3.707 4411 5234 6.192 2.332 2853 3.479 4.226 5.117 6.176 7.430 2.518 3.138 3.898 4.818 5.936 7.288 8.916 2.720 3452 4.363 5.492 6.886 8.599 10.699 2.937 3.797 4887 6.261 7.988 10.147 12.839 3172 4.177 5.474 7.138 9.266 11.974 15.407 4661 6.727 9.646 13.743 19.461 27390 38 338 6.848 10 835 17.000 26.462 40.874 62.669 95.396 10.063 17.449 29.960 50.950 85.850 143.371 237376 ALARA LAAEAAAAALA LA 1.898 2012 2.133 2261 2.397 3.207 4292 5.743 2191 2666 3.243 Print Done Reference Periods Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 4.853 4.7134.580 4.452 4.329 4.212 3.993 3.791 3.605 3.274 3.127 2.991 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 6.728 6.472 6.230 6.0025.786 5.5825.206 4.8684.564 4.288 4.039 3.812 3.605 7.652 7.3257.020 6.733 6.463 6.210 5.7475.335 4.968 4.639 4.344 4.078 3.837 8.566 8.1627.786 7.4357.108 6.8026.247 5.759 5.3284.946 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 10.368 9.7879.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.1945.660 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.342 4.910 4.533 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.0025.468 5.008 4.611 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 5.9295.353 4.870 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.1775.517 4.979 5.842 on ne le llana. La LATAA PPA Print Done Periods 5% 8% 20% 1.000 4.641 1% 1.000 2.010 3.030 4.060 5.101 6.152 7214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 2% 1.000 2.020 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 Future Value of Annuity of $1 3% 6% 10% 1.000 1.000 1.000 1.000 1.000 2.030 1.000 2.040 2.050 2.060 2.080 2.100 3.091 3.122 3.153 3.184 3.246 3.310 4.184 4.246 4.310 4.375 4.506 5.309 5.416 5.526 5.637 5.867 6.105 6.468 6.633 6.802 6.975 7.336 7.716 7.662 7.898 8.142 8.394 8.923 9.487 8.892 9.214 9549 9.897 10.637 11.436 10.159 10.583 11.027 11.491 12.488 13.579 11.464 12.006 12578 13.181 14.487 15.937 12.808 13.486 14.207 14.972 16.645 18.531 14.192 15.026 15.917 16.870 18.977 21,384 15.618 16.627 17.713 18.882 21,495 24.523 17.086 18.292 19.599 21.015 24.215 27.975 18.599 20.024 21.579 23.276 27.152 31.772 26.870 29.778 33.066 36.788 45.762 57.275 36.459 41.646 47.727 54.865 73.106 98.347 47.57556.08566439 79.058 113.283 164.494 12% 14% 16% 18% 1.000 1000 1.000 1.000 2.120 2.140 2.160 2.180 2 200 3.374 3.440 3.506 3.572 3.640 4.779 4.921 5.066 5.215 5.368 6.353 6.610 6.877 7.154 7.442 8.115 8,536 8,977 9.442 9.900 10.089 10.730 11.414 12.142 12916 12 300 13.233 14240 15327 16.499 14.776 16.085 17.519 19.086 20.799 17.549 19.337 21.321 23.521 25.959 20.655 23.045 25.733 28.755 32.150 24.133 27 271 30.850 34,931 39.581 28.029 32.089 36.786 42219 48 497 32.393 37.581 43.672 50.818 59.196 37280 43.842 51.660 60.965 72.035 72.052 91.025 115.380 146.628 186.688 133.334 181.871 249.214 342.603 471.981 241.333 356.787 530.312 790 948 1,181.882 2. Le non llen Print Done i Requirements 1. Compute this project's NPV using Monachino Industries' 16% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Monachino Industries could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $73,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $51,000 residual value at the end of Year 7. Should Monachino 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 outflow and inflows back to the present value.) Print Done