Ikoo Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000. 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 Ikoo's 14% hurdle rate. Should Ikoo 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.XX. Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Years Inflow = 14%) Present Value X Year 1 Present value of each year's inflow: (n = 1) Data Table Year 2 Present value of each year's inflow: (n = 2) Year 3 Present value of each year's inflow: (n = 3) Year 4 Present value of each year's Inflow: (n = 4) Year 1 $ 263,000 Year 5 Present value of each year's inflow: (n = 5) Year 2 255,000 Year 3 Year 6 Present value of each year's Inflow: (n = 6) 223,000 Year 4 212.000 Total PV of cash inflows Year 5 204,000 Year 0 Initial Investment Year 6 174,000 Net present value of the project - X Requirements fint Done 1. Compute this project's NPV using Ikoo's 14% hurdle rate. Should Ikoo invest in the equipment? 2. Ikoo could refurbish the equipment at the end of six years for $104,000. 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 $52,000 residual value at the end of year 7. Should Ikoo 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.)