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Marti 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. Requirement 1. Compute this project's NPV using Marti's 16% hurdle rate. Should Marti 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.) Net Cash PV Factor Present Years Inflow (i = 16%) Value 1 2 Present value of each year's inflow: (n = 1) (n = 2) (n = 3) (n = 4) (n = 5) 3 4 5 6 (n = 6) Total PV of cash inflows 0 Initial investment Net present value of the project Marti Industries invest in the equipment. Marti Industries invest in the equipment. Requirement 2. Marti could refurbish the equipment at the end of six years for $100,000. The refurbished equipment could be used one more year, providing $73,000 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 Marti 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 PV Factor Present (outflow)/inflow (i = 16%) 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 to overcome the alter Marti Industries' original decision original NPV of the equipment. Therefore, the refurbishment regarding the equipment investment. Enter any number in the edit fields and then continue to the next question. Data Table hl Year 1 $ 263.000 V Year 2 255,000 225,000 Year 3 Year 4 215.000 Ful nd ai 9 Year 5 201,000 Year 6 173,000 is ve Print Done US production process. The manufacturing equipment i Reference Present Value of $1 10% 0711 0744 0.887 0.661 Periods 1% 2% 3% 4% 5% 1 0 990 0.980 0971 0962 0 952 2 0 9800961 0943 0925 0907 3 0.971 0.942 0915 0889 0 864 4 0961 0924 08880855 0823 5 0.951 0.906 0.863 0822 0 784 6 0942 0.888 0837 0.790 0746 7 0933 0871 0813 0 760 8 0.923 0.853 0.789 0.731 0677 9 0914 0837 0.766 0703 0.645 10 0905 0 820 0676 0.614 11 0.896 0804 0.722 0 650 0585 12 0.788 0.701 0625 0.557 13 0879 0.773 0681 0.601 0530 14 0870 0.758 0.577 0505 15 0.861 0743 0642 0555 0.481 16 0853 0.728 0.623 0.534 0.458 17 0.844 0.714 0.605 0513 0436 18 0836 0.700 0587 0.494 0.416 19 0.828 0.686 0.570 0.475 0.396 20 0 820 0673 0.554 0.456 0377 21 0.811 0 660 0.439 0.359 22 0803 0.647 0.522 0.422 0342 23 0.795 0.634 0507 0.406 0.326 24 0.788 0.622 0.492 0390 0 310 25 0.780 0.610 0.478 0375 0.295 26 0.772 0.598 0464 0.361 0 281 27 0.764 0.586 0 450 0347 0.268 28 0.757 0574 0437 0333 0.255 29 0.749 0.563 0424 0321 0243 30 0.742 0552 0.412 0 308 0.231 40 0.672 0.453 0307 0.208 0.142 50 0.608 0372 0228 0.141 0.087 6% 7% 8% 9% 12% 14% 15% 0.943 09350 926 0917 0909 0893 0877 0870 0890 0873 0857 0842 0826 0797 0 759 0756 0 840 0816 0.794 0.772 0.751 07120675 0858 0.792 07630 735 0708 0683 0636 05920572 0747 0.713 | 0681 0 650 0621 0567 0519 0497 0 705 0 666 0630 0 596 0564 0507 0 456 0432 0 665 0.623 0583 0547 05130452 0.400 0376 0627 0582 0.540 0502 0.4670404 0 351 0327 0.592 0544 0.500 0 460 0.424 0361 03080 284 0.558 0.508 0463 0422 0.386 0.322 0270 0247 0527 0.475 0429 0388 0 350 0287 0237 0215 0497 0 444 0397 0 356 0319 0257 0208 0.187 0.469 0415 0.368 0.3260 290 0229 0 182 0163 0442 0388 0.340 0 299 0263 0 205 0 160 0.141 0.417 0.362 0.315 0.275 0239 0.183 0.140 0 123 0394 0339 0252 0218 0.163 0.123 0.107 0 371 0.317 0270 0231 0198 0.146 0.108 0 093 0.350 0296 0 250 0 212 0 180 0.130 0 095 0081 0.331 0277 0.232 0.194 0.164 0.116 0.083 0070 0312 0258 0215 0.178 0.149 0.104 0073 0061 0294 0242 0199 0164 0 1350 093 0.064 0.053 0278 0226 0 184 0.150 0.123 0083 0056 0 046 0.262 0211 0.170 0.138 0.112 0.074 0.049 0040 0247 0.197 0 158 0.126 0.102 0.066 0.043 0035 0233 0 184 0.146 0.116 0.092 0.059 0038 0030 0220 0.172 0.135 0.106 0.084 0.033 0026 0207 0.161 0.125 0098 0 076 0047 0.029 0023 0.196 0.150 0.116 0.090 0.069 0042 0.026 0020 0.185 0.141 0.107 0082 0.063 0.037 0 022 0017 0.174 0.131 0 099 0 075 0057 0.033 0.020 0015 0067 0.046 0.032 0.022 0011 0.004 0.054 0.034 0021 0.013 0.009 0.003 0001 0001 0292 0.538 0053 0097 0.005 Print Done NGPOODIT TOTTITTOTTE x Reference Periods 1 2 3 4 5 6 7 8 9 10 11 12. 13 14 15 5724 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 0.990 0980 0971 0.962 0.952 0.943 0935 0926 0917 | 0 909 0893 0 877 0 870 1970 1942 1913 1 886 1859 1833 1 808 1783 1 759 1.736 1 690 1 647 1.626 2941 2884 28292775 2.723 2673 26242577 2531 2 487 24022322 2283 3 902 3 808 3717 3.630 3546 3 465 3.387 3312 3240 3.170 3037 2914 2855 4.853 4.713 4.580 4452 4329 4212 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 4623 4.486 4355 4 111 3889 3784 6728 6.472 6.230 6 002 5.786 5.582 5 389 5 206 5033 4 868 4.564 4288 4.160 7.652 7325 7.020 6.733 6463 6210 5.971 5.747 5.535 5.335 4968 4.639 4.487 8.566 | 8.162 7.786 7435 7 108 6 802 6.515 6.247 5 995 5.759 5328 4.946 4772 9.4718 983 8530 8.111 7722 7360 7024 6710 6 418 6.145 5.650 5216 5019 10 368 9.787 9 253 8.760 8 306 7 887 7.499 7.139 6 805 6495 5.938 5 453 5 234 11 255 10 575 9.954 9385 8 863 8 384 7 943 7536 7 161 6 814 6.194 5.660 5421 12.134 11348 10 635 9.986 9 394 8 853 8.358 7904 7487 7 103 6.424 5.842 5.583 13.004 12 106 11 296 10 563 9 899 9295 8.745 8 244 7 786 7367 6 628 6 002 13 865 12 849 11938 11.118 10 3809712 9.108 8.559 8061 7606 6.811 6.142 5.847 14.718 13.578 12 561 11 652 10 838 10 106 9 447 8 851 8 313 7824 6.974 6265 5.954 15 562 14 292 13.166 12 166 11 274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6047 16.398 14.992 13754 12 659 11.690 10.828 10.059 9372 8.756 8 201 7250 6.4676.128 17 226 15.678 14 324 13 134 12085 11.158 10 336 9.604 8.950 8.365 7366 6.550 6 198 18.046 16 351 14 877 13.590 12.462 11.470 10 594 9.818 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 9292 8.649 7562 6 687 6312 19 660 17.658 15937 14 451 13.163 12042 11.061 10 201 9.442 8.772 7 645 6.743 6359 20.456 18 292 16.444 14 857 13.489 12 303 11.272 10 371 9580 8 883 7 718 6.792 6.399 21 243 18 914 16 936 15 247 13 799 12 550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 22.023 19 523 17.413 15 622 14 094 12 783 11.654 10 675 9 823 9.077 7 843 6 873 6.464 22.795 20.121 17 877 15 983 14 375 13.003 11 826 10 810 9.929 9.161 7.896 6 906 6.491 23 560 20 707 18 327 16 330 14 643 13 211 11 987 10 935 10 027 9237 7 943 6.935 6514 24 316 21.281 18 764 16 663 14 898 13.406 12.13711.051 10.116 9307 7 984 6.961 6534 25 066 21 844 19.188 16 984 15.141 13 591 12 278 11.158 10.198 9370 8022 6.983 6.551 25 808 22 396 19600 17.292 15 372 13765 12 40911 258 10 274 9.427 8.055 7.003 6.566 32 835 27 355 23 115 19.793 17 159 15.046 13 332 11.925 10.757 9 779 8.244 7 105 6.642 39.196 31.424 25.730 21 482 18 256 15762 13 801 12233 10 962 9.915 8.304 7.133 6.661 16 18 19 20 ha 21 22 23 24 25 26 27 28 29 30 40 50 Print Done