Gammaro Industries is deciding whether to automate one phase of its production process. the manutacturing equipment has a six-year life and wit cost 920,000. Projected net cash inflows are as follows.

Requirement 2. Gammaro Industries could refurbish the equipment at the end of six years for $ 101,000. 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 $54,000 residual value at the end of Year 7. Should Gammaro 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.)

Calculate the additional NPV provided from the refurbishment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.)

Adstianal NeV provided from refultshimsiy (Click the icon to view the profected net cash inflews) (Click the icon to view the prisent value tatle.) (Click that ieon to view the present value annuty tatlia) (Ciing the icon to vew the futuru value table.) (celisk the icon to verw the futare value annulity table) Rearit the techuluments Requirement 1. Compuse this projects NPV using Garmm weo industies' 14% huedle rate. Should Garmaro indatries invest in the equipment? Why or why not? Begn by camputhy the project's NeV (net present vabe) (Fhound your answor to the newest whole dollar, Use parenthoses or a minus sign for negative net gresent valuass) Ner present value Cammare indutios invest in the equipment becave It NPV is negative. wdition to your answer to Requeerment 1, decount the addecial cash outflow and inflows back to the prosent value.) Colculite the addlional hev provided from he relurbishent, (Round your answer to the nearest whole dollar Use parentheses or a minus ilgn for negative net prisent values) Additanas K.PV provided form zelatiktumenf. Data table