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Ikoo Industries is deciding whether to automate one phase of its production process. The manulacturing equipraent has a sik-yoar life and will cost $915,000, Projocted

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Ikoo Industries is deciding whether to automate one phase of its production process. The manulacturing equipraent has a sik-yoar life and will cost $915,000, Projocted net canh inflows are as follows (Click the icon to view the projected net cash inflown.) (Click the icon to view Present Value of 51 table) (Click the kon to view Pregent Value of Ordinary Arnulty of $1 table.) Read the tequlrements Ikoo industrios Imvest in the equipment. Requirement 2. Ihoo could refurbish the equipment at the end of sixyears for $106.000. The refurbished equipment could be used one more year, providipg $76,000 of net cash six years? (Hint. In addition to your answer to Requirement 1 , discount the additional cash outfow and intows back to the preseot value.) Calculate the NPV of the refurbishment, (Enter any factor amounts to three decimal places Xx. Use parentheses or a minus sign lor cash oultivias and far a negativa net prosent valuo ) Data table Reference Returbishment at the end of Year 6(n) Cash intlows is Year 7(e7) Resifuat value (nn) Net peesent value of the inferbishment Requirements 1. Compute this project's NPV using koo's 14% hurdle fate Should ikoo inveot in the equipment? 2. Ikoo could refurbish the equigment at the end of sk years for $106,000. The refurbishod equipment could be used one more year, providing $76,000 of net cash inflows in year 7 . Additionally the refurbighed equipment would have a $50.000 residual value at the end of year 7 . Should ikoo invent in the equipment and refurbish it after six yeurs? (Hint in addeton to your angwer to Requirement 1, discount the additional casticutfiow and inflows back to the present value.) Ild be used one more year, provising 376.000 of t fle lkoo invest in the equipmont and rofubith in at po prosent value ? a minus sign for cash outtoas and for a negativas

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