HW Score: 32 Que Homework: Chapter 26 of 8 (3 complete) Score: 0 of 1 pt E26-24 (similar to) Cury Industries is deciding whether to domate one phase of its production process. The manufacturing equipment has a six year ife and will cost $925,000. 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) clock the icon to view Present Value of Ordrary Annuity of $1 table.) Read the Requirement 1. Compute this projects NPV using Cury's 14% hurdle rate. Should Oury invest in the equipment? Use the following able to calculate the represent value of the project(Enter any factor amounts to the decimal places, XXOOX Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Present Tears Inflow 14%) Value 0 Requirements Present value of each year's now 2 3 4 5 1. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury invest in the equipment? 2. Cury could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, providing $72.000 of net cash flows in year 7. Additionally, the refurbished equipment would have a 354,000 residual value at the end of year 7. Should Cury invest in the equipment and refurbisher six years? (Hint: In addition to your answer to Requirement discount the additional cash outflow and inflows back to the present) To Polshows 0 pote Print Done terny her in the tels and then click Check uring equipment has a six-year life and will cost $925,000. Projected ne of Ordinary Annuity of $1 table.) he equip to three d 0 Data Table X n for a neg Year 1 $ 263,000 254,000 Year 2 Year 3 Year 4 223,000 214,000 205,000 178,000 Year 5 Year 6 Print Done Clear All