i Requirements 1. Compute this project's NPV using Berkner Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Berkner Industries could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $73,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $50,000 residual value at the end of Year 7. Should Berkner 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.) Print Done Data Table $261,000 $253,000 $222,000 $210,000 $200,000 $176,000 Year 2 Year 3 Year 4 Year5 Year 6 Print Done Present Value of $1 Periods 1% | 2% | 3% 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 0.9900.9800.9710.962 0.9520.9430.9260.909 0.8930.8770.8620.8470.833 2 0.9800.9610.943 0.925 0.9070.8900.8570.8260.7970.7690.743 0.7180.694 3 0.9710.942 0.915 0.8890.8640.840 0.7940.7510.7120.675 0.6410.609 0.579 4 0.961 0.9240.8880.8550.823 0.7920.7350.6830.6360.5920.5520.516 0.482 50.951 0.906 0.8630.822 0.784 0.7470.681 0.621 0.5670.5190.4760.4370.402 60.942 0.8880.837 0.790 0.746 0.7050.6300.5640.5070.4560.410 0.3700.335 70.9330.871 0.813 0.7600.711 0.6650.583 0.513 0.452 0.4000.3540.3140.279 8 0.923 0.8530.7890.731 0.6770.627 0.540 0.4670.4040.3510.3050.2660.233 9 0.9140.8370.766 0.703 0.645 0.5920.500 0.4240.3610.308 0.2630.2250.194 10 0.9050.820 0.7440.676 0.614 0.5580.463 0.386 0.322 0.270 0.227 0.191 0.162 110.896 0.8040.7220.6500.585 0.527 0.429 0.350 0.2870.2370.1950.1620.135 12 0.8870.7880.701 0.625 0.557 0.4970.397 0.319 0.257 0.208 0.1680.137 0.112 13 0.8790.7730.6810.601 0.530 0.469 0.3680.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.7580.6610.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.0990.078 15 0.8610.7430.6420.5550.4810.4170.315 0.2390.1830.140 0.1080.0840.065 20 0.820 0.673 0.5540.4560.3770.3120.215 0.1490.1040.0730.0510.037 0.026 25 0.7800.610 0.4780.3750.2950.2330.146 0.092 0.0590.0380.0240.016 0.010 30 0.742 0.552 0.412 0.3080.231 0.1740.0990.057 0.033 0.0200.012 0.007 0.004 400.672 0.453 0.3070.208 0.1420.097 0.046 0.022 0.011 0.0050.003 0.0010.001 | 4% | 5% 0% 200 40 2 014 8 680 160 102 41 999 ese 67 33 996 7 24704 9531-49 11122 23456 78 025 85 11-39 8 74 39 02398 689 789 8-13692 71742 125 595 853 1 2 11 26 06110 66831 76686 610 32701 13886 6-1 3 581 48284 19892 488 905 148 00295 52327 68218 40882 90550 21963 4-13469 15827 28421 542 41 076 71 2-12457 92471 48384 6 793 599 8 075 2 23334 6 07 7 2223 46 10 17 723 69 094 1123 45567 80123 227 89 91 2 6 66 07 4456 77890 633 5-0 02507 56930 915 8271 61628 306 0112 23344 56678 1628 0 9640 01369 36925 00011 I 075 360 223 6938 6 2615 0 3 34455 8042 2 00124 69259 38496 6118 680 24791 4691 2 0 0 0 0 1 11-12 2223 2 289 7 8 00000 00001 11111 2234 0 12345 0500 i-12345 6789 0% 200 40 2 014 8 680 160 102 41 999 ese 67 33 996 7 24704 9531-49 11122 23456 78 025 85 11-39 8 74 39 02398 689 789 8-13692 71742 125 595 853 1 2 11 26 06110 66831 76686 610 32701 13886 6-1 3 581 48284 19892 488 905 148 00295 52327 68218 40882 90550 21963 4-13469 15827 28421 542 41 076 71 2-12457 92471 48384 6 793 599 8 075 2 23334 6 07 7 2223 46 10 17 723 69 094 1123 45567 80123 227 89 91 2 6 66 07 4456 77890 633 5-0 02507 56930 915 8271 61628 306 0112 23344 56678 1628 0 9640 01369 36925 00011 I 075 360 223 6938 6 2615 0 3 34455 8042 2 00124 69259 38496 6118 680 24791 4691 2 0 0 0 0 1 11-12 2223 2 289 7 8 00000 00001 11111 2234 0 12345 0500 i-12345 6789 Present Value of Annuity of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% | 10.990 0.9800.971 0.9620.9520.9430.9260.909 0.8930.8770.8620.847 0.833 21.970 1.942 1.913 1.886 1.8591.833 1.783 1.7361.690 1.6471.6051.5661.528 32.941 2.8842.829 2.775 2.723 | 2.673 2.5772.4872.402 2.322 2.2462.1742.106 43.9023.8083.717 3.6303.5463.465 3.3123.1703.0372.9142.7982.6902.589 54.8534.7134.5804.452 4.329 4.212 3.993 3.791 3.605 3.4333.2743.1272.991 65.7955.601 5.417 5.242 5.076 4.9174.6234.3554.1113.8893.6853.4983.326 76.728 6.4726.230 393.812 3.605 6.0025.7865.5825.2064.8684.5644.2884.03 87.652 7.325 7.020 6.733 6.463 6.210 5.7475.335 4.968 4.639 4.344 4.078 3.837 98.5668.1627.7867.435 7.108 6.802 6.2475.7595.3284.9464.6074.3034.031 10 9.4718.9838.5308.1117.7227.3606.710 6.1455.6505.216 4.8334.4944.192 1 10.368 9.7879.253 8.760 8.306 7.8877.139 6.495 5.938 5.453 5.0294.656 4.327 12 11.255 10.575 9.9549.3858.8638.3847.536 6.8146.1945.6605.197 4.7934.439 13 12.134 11.348 10.635 9.9869.3948.8537.9047.1036.4245.8425.342 4.9104.533 14 13.00412.106 11.296 10.563 9.8999.2958.2447.367 6.628 6.0025.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.3809.7128.5597.606 6.811 6.1425.5755.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.8188.514 7.469 6.623 5.9295.353 4.870 25 22.023 19.52317.413 15.622 14.094 12.783 10.675 9.077 7.8436.8736.0975.4674.948 30 25.80822.396 19.600 17.292 15.372 13.765 11.2589.4278.0557.0036.1775.5174.979 40 32.83527.35523.115 19.793 17.15915.046 11.925 9.7798.2447.1056.2335.548 4.997 Future Value of Annuity of $1 2% 1.000 2.020 3.060 20% Periods 10% 12% 18% 2.030 3.091 4.184 5.309 6.468 7.662 8.892 2.050 3.153 4.310 5.526 2.060 2.080 3.246 4.506 5.867 7.336 8.923 2 2.010 3.030 4.060 2.040 2.100 3.310 4.641 2.120 3.374 4.779 2.160 3.506 5.066 6.877 8.977 2.200 3.440 5.215 4.246 5.416 6.633 7.898 9.214 4.375 5.368 7.442 9.930 10.089 10.730 11.41412.142 2.916 10.63711.436 12.300 13.23314.24015.327 16.499 5.204 6.152 7.214 8.286 9.369 6.308 7.434 8.583 9.755 6.802 8.142 9.549 6.975 8.394 9.897 7.716 9.487 8.536 9.442 10.15910.583 11.027 11.4912.488 13.57914.77616.085 17.519 19.08620.799 10 10.462 10.950 11.464 2.006 12.578 13.18114.487 15.937 17.54919.337 21.321 23.521 25.959 11.5672.16912.808 13.486 14.20714.972 16.64518.531 20.655 23.045 25.73328.755 32.150 12.68313.412 14.192 15.026 15.917 16.870 8.97721.38424.13327.27130.85034.93139.581 13.80914.680 15.618 16.62717.713 18.882 21.495 24.523 28.02932.089 36.78642.21948.497 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.97532.39337.58143.67250.818 59.196 16.09717.293 18.59920.02421.579 23.276 27.15231.772 37.28043.84251.660 60.965 72.035 12 13 20 25 30 40 22.01924.29726.870 29.77833.06636.786 45.762 57.27572.05291.025 115.380 146.628 186.688 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347133.334 181.871 249.214342.603 471.981 34.785 40.56847.575 56.085 66.43979.058113.283164.494 241.333356.787 530.312 790.948 1,181.882 48.88660.40275.401 95.026 120.800154.762259.057442.593767.091 1,342.025 2,360.757 4,163.2137,343.858