Hartley Company is considering an investment opportunity with the following expected net cash inflows: Year 1, $250,000; Year 2, $170,000; Year 3, $105,000. The company uses a discount rate of 7% and the initial investment is $325,000. 2 (Click the icon to view Present Value of $1 table.) Click the icon to view Present Value of Ordinary Annuity of $1 table.) Calculate the NPV of the investment. Should the company invest in the project? Why or why not? Use the following table to calculate the net present value of the project. (Enter any factor amounts to three decimal places, X.XXX.) Net Cash Inflow PV Factor (i = 7%) Present Value Years 1 2 3 Present value of each year's inflow: (n = 1) (n = 2) (n = 3) Total PV of cash inflows Initial investment Net present value of the project Reference Periods 3% 0.971 0.943 0.915 0.888 0.863 0.837 0.813 0.789 0.766 0.744 0.513 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 0.229 0.205 0.183 0.340 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 0.871 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 0.853 0.728 0.844 0.714 0.836 0.700 0.828 0.686 0.820 0.673 0.811 0.660 0.803 0.647 0.795 0.634 0.788 0.622 0.780 0.610 0.772 0.598 0.764 0.586 0.757 0.574 0.7490.563 0.742 0.552 0.453 0.608 0.372 0.722 0.701 0.681 0.661 0.642 0.623 0.605 0.587 0.570 0.554 0.538 0.522 0.507 0.492 | 0.478 0.464 0.450 0.437 0.424 0.412 0.307 0.228 Present Value of $1 4% 5% 6% 7% 8% 9% 10% 0.962 0.952 0.9430.935 0.926 0.917 0.909 0.925 0.907 0.890 0.873 0.8570.842 0.826 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.760 0.711 0.665 0.623 0.583 0.547 0.731 0.677 0.627 0.5820.540 0.502 0.467 0.703 0.6450.592 | 0.544 0.500 0.460 0.424 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.650 | 0.585 0.527 0.475 0.429 0.388 0.350 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.577 0.505 0.442 0.388 0.299 0.263 0.555 0.481 0.417 0.362 0.315 0.275 | 0.239 0.534 0.458 | 0.339 0.292 0.252 0.218 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.456 0.377 0.312 0.258 0.215 0.178 | 0.149 0.439 0.359 0.294 0.242 0.1990.1640.135 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.390 0.310 0.247 0.197 0.158 | 0.126 0.102 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.333 0.255 0.196 0.150 0.116 0.090 0.069 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.308 0.231 | 0.174 0.131 0.099 0.075 0.057 0.208 0.142 0.067 0.046 0.032 0.022 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.053 0.047 0.042 0.037 0.033 0.011 14% 15% 0.877 0.870 0.769 0.756 0.675 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 0.215 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 0.049 0.040 0.043 0.035 0.038 0.030 0.033 0.026 0.029 0.023 0.026 0.020 0.022 0.017 0.0200.015 0.005 0.004 0.001 0.001 16% 18% 20% 0.862 0.847 0.833 0.743 0.718 0.694 0.641 0.609 0.579 0.552 0.516 0.482 0.476 0.437 0.402 0.410 0.370 0.335 354 0.314 0.279 0.305 0.266 0.233 0.263 0.225 0.194 0.227 | 0.191 0.162 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 0.093 0.071 0.054 0.080 0.060 0.045 0.069 0.051 0.038 0.060 | 0.043 0.031 0.051 0.037 0.026 0.044 0.031 0.022 0.038 | 0.026 0.018 0.033 | 0.022 0.015 0.028 | 0.019 0.013 0.024 | 0.0160.010 0.021 0.014 0.009 0.0180.0110 .007 0.0160.010 0.006 0.014 0.008 0.005 0.012 0.007 0.004 0.003 0.001 0.001 0.001 0.097 0.003 0.001 Print Done i Reference Periods 1% 0.990 1.970 20% 0.833 1.528 2.775 5.206 4.564 5.535 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 11.255 12.134 Present Value of Ordinary Annuity of $1 2% 3% 14% 5% 6% 7% 18% 9% 10% 12% 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 1.942 1.913 1.886 1.859 1.8331.808 1.783 1.759 1.736 1.690 2.884 2.829 2.723 2.673 2.624 2.577 2.531 2.487 2.402 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 4.713 4.580 4.452 4.329 4.212 | 4.100 3.993 3.890 3.791 3.605 5.601 5.417 5.242 5.076 | 4.917 | 4.767 4.623 4.4864.355 4.111 6.472 6.230 6.002 5.786 5.582 5.389 5.033 4.868 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.335 4.968 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 9.787 9.253 8.760 8.306 7.887 | 7.499 | 7.139 6.805 6.495 5.938 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 194 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 424 12.106 | 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 14.292 13.166 12.166 | 11.274 10.477 9.763 9.122 8.544 8.022 | 7.120 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 | 7.366 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 | 7.469 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 17.658 15.937 14.451 12.042 11.061 10.201 9.442 8.772 7.645 18.292 16.444 13.489 12.303 11.272 10.371 9.580 8.883 7.718 18.914 16.936 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.843 20.121 17.877 15.983 14.375 13.003 11.826 10.8109.929 9.161 7.896 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 21.281 18.764 | 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 21.844 19.188 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.022 22.396 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.055 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 | 9.779 8.244 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8.304 7.103 14% 15% 0.877 | 0.870 1.647 1.626 2.322 2.283 2.914 2.855 3.433 3.352 3.889 3.784 4.288 4.160 4.639 4.487 4.946 | 4.772 5.216 5.019 5.453 5.234 5.660 5.421 5.842 5.583 6.002 5.724 6.142 5.847 6.265 5.954 6.373 6.047 6.467 6.128 6.550 6.198 6.623 6.259 6.687 6.312 6.743 | 6.359 | 6.792 6.399 6.835 6.434 6.873 6.464 6.906 6.491 6.935 6.514 6.961 6.534 6.983 6.551 7.003 6.566 7.105 6.642 7.133 6.661 18% 0.847 1.566 2.174 | 2.690 | 3.127 3.498 3.812 4.078 | 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 6.974 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 6.044 6.073 6.097 6.118 6.136 6.152 6.166 6.177 6.233 6.246 5.222 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.891 4.909 4.925 4.937 4.948 4.956 4.964 4.970 4.975 4.979 4.997 13.163 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 492 14.857 5.510 5.517 5.548 5.554 4.999 Print Print Done Done