here below: Present value of $1 table

Present Value of Ordinary Annuity of $1 table, below:

Eve Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost 5915,000 Projected nel 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 resuitement Inflow Requirement 1. Compute this project's NPV using Eve's 16% hurdle rate. Should Eve 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, XXXX Use parentheses or a minus sign for a negative not present value) Net Cash PV Factor Years -16%) Present Value Year 1 Present value of each year's Inflow: (n - 1) 262000 Year 2 Present value of each year's inflow: (n - 2) 250000 Year 3 Present value of each year's inflow: (n-3) 226000 Year 4 Present value of each year's inflow:(n-) 212000 Year 5 Present value of each year's inflow. (n = 5) 200000 Year 6 Present value of each year's inflow. In - 6) 175000 Time Damen Eve 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 51 table) Click the icon to view Present Value of Ordinary Annuity of S1 table.) Read the requirements Year 3 Present value of each year's inflow: (n-3) 226000 Year 4 Present value of each year's inflow: (n - 4) 212000 Year 5 Present value of each year's inflow (1-5) 200000 Year 6 Present value of each year's inflow: (n = 6) 175000 Total PV of cash inflows Year Initial investment Net present value of the project Eve Industries invest in the equipment Requirement 2. Eve could refurbish the equipment at the end of six years for $106,000. The refurbished equipment could be used one more year providing $75,000 of net cash inflows in year 7 Additionally, the refurbished equipment would have a $51,000 residual value at the end of year 7 Should Eve invest in the > Requirement 2. Eve could refurbish the equipment at the end of six years for S106,000. The refurbished equipment could be used one more year, providing $75.000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a 551,000 residual value at the end of year 7 Should Eve 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 prese value) Calculate the NPV of the refurbishment. (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for cash outflows and for a negative net present value) PV Factori outflowinflow 16%) Present Value Refurbishment at the end of Year 6 (- 6) Cash inflows in Year 7 (-7) Residual value (7) Net present value of the refurbishment Cash > negative net present value) Cash PV Factori (outflowinflow 16%) Present Value Refurbishment at the end of Year 6 (n = 6) Cash inflows in Year 7 in 7) Residual value (0-7) Net present value of the returbishment The refurbishment provides a NPV. The refurbishment NPV is to overcome the original NPV of the equipment. Therefore, the refurbishment alter Eve Industries original decision regarding the equipment investment USL automate one phase of its production process. The manufacturing equipment a Sayed OWS ted net cash Data table alue of $1 tab nuity of $1 table.) Year 1 $ Year 2 Year 3 262,000 250,000 ct's NPV using che net presen e.) places, XXXX. Use parentheses or Year 4 226 000 212.000 200.000 175.000 Year 5 Year 6 ear's inflow: ear's inflow: ear's inflow: ear's inflow: ear's inflow: Print Done ear's inflow: In = 6) 1750001 Requirements 1. Compute this project's NPV using Eve's 16% hurdle rate. Should Eve invest in the equipment? 2. Eve could refurbish the equipment at the end of six years for $106,000. The refurbished equipment could be used one more year, providing $75,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $51,000 residual value at the end of year 7 Should Eve 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.) Print Done ach year's inflow: (n-6) 175000 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 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 0.862 0.847 0.833 Period 20.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0 712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0 792 0.763 07350.708 0.683 0 636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0713 0.681 0.650 0621 0.567 0.519 0.497 0.476 0.437 0.402 Period 60.9420.888 0 837 0 790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0 410 0.370 0.335 Period 7 0 933 0.871 0.813 0.7600.711 0.665 0.623 0.5830.547 0 513 0.452 0.400 0.376 0.3540 314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0 266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0 592 0.544 0.500 0.460 0.424 0 361 0.308 0 284 0.263 0.225 0.194 Period 0.905 0.820 0.744 0,676 0.614 0.558 0.5080.463 0.422 0.386 0.322 0.270 0.2470 227 0.191 0.162 10 Period 110.896 0.804 0.722 0.650 0.585 0527 0.475 0.429 0.3880 350 0.287 0237 0.215 0.195 0.162 0 135 Period 0.887 0.7880701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.1370 112 12 Period 0.879 0.77310681 0.60105300 46904150 3680 3260 290 0.229 0.1820 163 0.1450 1160.093 Print Done Period 0.887 U.TOTU ZUTTU OZ5 0.557 U4YT0444 0.397 TV.356 V.STYTU.257 TV.ZUOTU. TOTTU. TOTUTST TUTTZ 12 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 13 Period 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 14 Period 0.861 0.743 06420.555 0 481 0.417 0.362 0315 0.275 0.239 0.183 0.140 0.123 0.1080.084 0.065 15 Period 0.853 0.728 0.623 0.534 0.458 0 394 0.3390.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 16 Period 0.844 0714 0.605 0.513 0.436 0.371 0 317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 17 Period 0.836 0700 0.587 0.494 0416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 18 Period 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0 232 0.194 0.164 0.116 0.083 0.070 0.060 0,043 0.031 19 Period 0.820 0.673 0.554 0.456 0.377 0312 0.258 0 215 0.1780.149 0.104 0.073 0.061 0.051 0.037 0.026 20 Print Don Period 0.811 0.660 0.538 0.439 0.359 0.294 0.242 0.1990.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 21 Period 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 22 Period 0.795 0.634 0.507 0.4060326 0.262 0.211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 23 Period 0.788 0622 0.492 0.390 0.310 0.247 0 197 0.158 0.126 0.102 0.066 0.043 0.035 0.028 0.019 0.013 24 Period 0.780 0.610 0.478 0.375 0.295 0 233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 25 Period 0.7720598 0.464 0.361 0281 0220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 26 Period 0.764 0.586 0.4500 347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0,023 0.0180.0110.007 27 Period 0.757 0.574 0.437 0 333 0 255 0196 0 150 0.116 0.090 0.069 0042 0.026 0.020 0,016 0010 0.006 28 Period 0.7490.563 0 424 0.321 0.243 0.18 0.141 0.107 0.0820063 0.037 0 022 0.017 0.014 0.008 0.005 129 Print Done 24 Period 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0.038 0.030 0.024 0.016 0.010 25 Period 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0 106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 26 Period 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.011 0.007 27 Period 0.757 0.574 0.437 0.333 0 255 0.1960 150 0.116 0.090 0.069 0.042 0.025 0.020 0.016 0.010 0.006 28 Period 0.749 0.563 0.424 0.321 0.243 0.185 0.141 0.1070.082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 29 Period 0.742 0.552 0.412 0.308 0.231 0.174 0131 0.099 0.075 0.057 0.033 0.0200.015 0.012 0.007 0.004 30 Period 0.6720.453 0.307 0.208 0 0.097 0.067 0.046 0.032 0.022 0.011 0.005 0.0040.003 0.001 0.001 40 Period 0.608 0.372 0.228 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.003 0.001 0.001 0.001 50 1 42 Reference Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 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 0.862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1859 1.833 1808 1783 1759 1736 1.6901.647 1.626 16051566 1528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2624 2.577 2.531 2.487 2.402 2 322 2283 2246 2 174 2 106 Period 4 3.902 3.808 3.7173.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2914 2.855 2.798 2.6902 589 Period 5 4.8534.713 4.580 4.452 4.3294212 4.100 3.9933.890 3.791 3.605 3.433 3.352 3 274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.4864.355 4.111 3.889 3.784 3.685 3.498 3.326 Period 76.728 6 472 6.230 6.002.5.786 5.582 5.389 5.206 5.033 4868 4564 4.288 4160 4.039 3.812 3 605 Period 87.652 7325 7020 6.733 6 463 6 210 5.971 5.7475 535 5.335 4.968 4.639 4487 4 344 4.078 3 837 Period 9 8,566 8.162 7.786 7.435 7 108 6.802 6.515 6 247 5.995 5.759 5328 4.946 4.772 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7722 7360 7.024 6.710 6.418 6.145 5.6505.216 5.019 4833 4.494 4192 Period 1110 368 9.787 9.253 8.760 8.306 7.887 7 499 7 139 6 805 6495 5.938 5.453 5.234 5.029 4656 4327 Period 12 11 255 10 575 9.954 9.385 8.8638.384 7.943 7.536|7161 6.814 6.194 5.660 5.421 5.197 4793 4.439 Period 131213411.348 10 635 9.986 9.394 8 853 8.358 790474877 103 6.424 5.842 5583 5.342 4.910 4533 Period 141300412 106 11 296 10.563 9 899 9.295 8.745 8.2447 786 73676.628 6.002 5.724 5.468 5.0084611 Period 15 13 865/12 849 11.93811.118 10 3809712 9 108 8.559 806176066 811 6 142 5.847 5575 5.0924675 Print Done Period 1614.71813.578 12561 11.652 10.83810.106 9.447 8.851 8.313 7 824 6974 6 265 5.954 5.669 5.162 4.730 Period 1715.562 14.292 13 166 12.166 11 27410.477 9.763 9.122 8544 8.022 7.120 6373 6.047 5749 5.222 4.775 Period 1816,398 14.992 13.754 12.659 11.690 10.82810 059 9.372 8.756 8.2017.250 6.467 6.128 5.818 5.273 4.812 Period 1917 22615 678 14 324 13.134 12.08511.15810.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5316 4.844 Period 2018.046 16.351 14.877 13.590 12 462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 Period 2118 857 17.011 15.415 14.029 12.82111.764 10.836 10.01792928 649 7.562 6.687 6.312 5973 5384 4.891 Period 22 19.66017658 15937 14 4511316312.042 11.061 10.2019.442 8.772 7.645 6.743 6.359 6011 5.410 4.909 Period 2320.45618 292 16.444 14 857 13.48912,303 11 272 10.371 9.580 8883 7718 6.792 6.399 6.044 5.432 4.925 Period 2421 24318 914 16.936 15 247 13 79912 550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 6.073 5 451 4.937 Period 252202319,523 17.413 15.622 14.09412.78311.654 10.675 9.8239.077 7.843 6.873 6.464 6.097 5.467 4.948 Period 2622 79520.121 17 87715.983 14.3751300311.826 10.8109.929 9.161 7.896 6.906 6.491 6.118 5.480 4956 Period 2723 56020.70718 327 16 33014,64313 2111198710.93510 027 9.237 7.943 6.935 6.514 6.136 5.492 4.964 Period 2824 31621.281 18 764 16.663 14.89813.406 12.137 11051 10.116 9.307 7.984 6.961 6,534 6 152 5.502 4.970 Period 292506621.844 19.188 16.984 15.14113.591 12.278 11.158 10.198 9.370 8.022 6.983 6.551 6.166 5.510 4.975 Period 30.25 80822.396 19.600 17 292 15.372 13.765 12.409 11 258 10.274 9.427 8.055 7.003 6.566 6.1775.517 4.979 Period 4032 835 27 355 23.115 19.7931715915.04613 332 11.92510.757977982447105 6,642 6.233 5.548 4997 Period 50 39 196/31 424 25 730 21 482 18 25615 76213 80112 233 10.962 9.915 8 304 7.133 6.66162465554/4.999 J.TUCYJU CTTTTTTUJTU TVZT WOUT TUOTTUUTTUU TUNTUUTTU EU Period 171556214.292 13.166 12 166 11 274 10.477 9763 9.122 8.544 8.022 7.120 6.373 6047 5.749 5.222 4.775 Period 1816 39814.992 13.754 12.659 11.69010828 10.059 9.372 8.756 8.2017.250 6.467 6. 128 5818 5 273 4 812 Period 1917 22615.678 14.324 13 134 12 08511.15810.336 9.604 8.950 8.365 7.366 6.550 6 198 5.877 5.316 4.844 Period 2018 04616 351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 7.469 6.623 6.259 5.929 53534870 Period 21 18 857 17.011 15.415 14.02912.82111.764 10.836 10.0179292 8.649 7.562 6.687 6.3125.973 5.384 4.891 Period 22 19 66017658 15937 14.45113 163 12.042 11.06110.2019.442 8772 7645 6.743 6.359 6.011 5 410 4.909 Period 2320.45618 292 16.444 14.857 13.48912.303 11 272 10.371 9.580 8.883 77186.792 6.399 6.044 5.432 4.925 Period 2421 24318.914 16.936 15 247 13.79912550 11.469 10.529 9.707 8.985 7784 6835 6.434 6.073 5.451 4937 Period 2522 0231952317 41315.622 14.0941278311.654 10,6759.8239.077 7.8436.873 6.464 6.097 5.467 4.948 Period 262279520.121 17 877 15 98314 37513,003 11.826 10.810 9.929 9.161 7896 6.906 6.491 6.118 5.480 4956 Period 2723.56020 707 18.327 16 3301464313 211 11.987 10,935 10.027 92377.943 6.935 6.514 6 136 5.492 4964 Period 2824 3162128118.76416 663 14.89813.406 12. 13711051 10.116 9.307 7.984 6.961 6.534 6.152 5.502 4.970 Period 2925 06621844 19 188 16.984/15 141 13.59112 27811.158 10.1989 370 8.022 6.983 6.551 6.166 5.510 4.975 Period 3025 80822.396 19.600 17.29215.37213.765 12.40911 258 10.274 9.427 8.055 7.003 6.566 6.177 5517 4.979 Period 4032 83527 355 23. 115 19.793 17. 15915 0461333211925 10.757 97798.244 7 105 6.642 6 233 5548 4 997 Period 50 39.19631.424/25.73021 482 1825615.762 13.80112233 10.962 9.915 8.304 7.133 6.661 6.2465,554 4.999 ar Print Done