Kerwin Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000. Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view the present value table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Read the requirements Requirement 1. Compute this project's NPV using Kerwin Industries' 14% hurdle rate. Should Kerwin Industries invest in the equipment? Why or why not? Begin by computing the proje ive net prese Reference Net present value $ Reference - X - Kerwin Industries Periods Requirement 2. Kerwin Indus refurbish it after six years? W ustries invest in the equipment and pore year, pr o the presen pgative netp 2% 1.000 2020 3.060 4.122 Calculate the additional NPV 4 5 5204 5526 Additional NPV provided from 6.610 1442 6.308 The refurbishment provides al 7.434 7 1% 1.000 2010 3.030 4.060 5.101 6.152 7.214 8286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 12.142 le, the refurb 8.583 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12808 14.192 15.618 17.086 18.599 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 2941 2.8842.8292.775 2.723 2.6732577 2.487 2.402 2.322 2246 2.174 2.106 3.902 3.808 3.717 3.630 3.546 3.4653 312 3.170 3.037 2.914 2.798 2.690 2589 5 4.853 4.713 4.580 4.452 4.329 4.2123993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.0764.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 9 8.566 8.1627.786 7.435 7.108 6.802 6247 5.759 5328 4.946 4.607 4.303 4.031 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.650 5.216 4833 4.494 4.192 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 12.134 11.348 10.635 9.986 9.3948.853 7.904 7.103 6.424 5.3424.910 4.533 13.004 12.106 11.296 10.563 8 244 7.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8559 7.606 6811 6.142 5.575 5.092 4.675 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.4696.623 5.9295.353 4.870 22.023 1952317.413 15.622 14.094 12.783 10.675 9.077 7.843 6.8736.097 5.467 4.948 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.0036.177 5.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 14.240 8 9 10 9.755 10.950 4% 1.000 2040 3.122 4.246 5416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 8% 10% 1.000 1.000 .000 1.000 2050 2060 2.080 2.100 3.153 3.184 3.246 3,310 4310 4.375 4506 4641 5.637 5.867 6.105 6.802 6.975 7336 7.716 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12.488 13.579 12578 13.181 14.487 15.937 14207 14.972 18.531 15.917 16.870 18.977 21.384 17.713 18.882 21.495 24523 19.599 21.015 24.215 27.975 21.579 23.276 27.152 31.772 33.066 36.786 57 275 47.727 54.865 73.106 98.347 66.439 79.058 113.283 164 494 120.800 154.762 259.057 442593 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 2.120 2.140 2.160 2.180 2200 3.374 3.440 3.506 3572 3.640 4.779 4.921 5.066 5215 5.368 6.353 6.877 7.154 8.115 8.536 8.977 9.442 9.930 10.089 10.730 11.414 12916 12.300 13.233 15.327 16.499 14.776 16.085 17.519 19.086 20.799 17.549 19.337 21.321 23.521 25.959 25.733 28.755 32.150 24.133 27.271 30.850 34.931 39.581 28.029 32.089 36.786 42.219 48.497 32 393 37 581 43.672 50.818 59.196 37.280 43.842 51.660 60.965 72.035 72.052 91.025 115.380 146.628 186.688 133.334 181.871 249.214 342.603 471.981 241.333 356.787 530.312 790.948 1,181.882 767.091 1,342.025 2,360.757 4.163.2137.343.858 11 12.169 16.645 20.655 23.045 13.412 14.680 15.974 17 293 24 297 32.030 40.568 60.402 22.019 26.870 45.762 28.243 34.785 48.886 36.459 47.575 75.401 Print Done Print Done are as follows (Click the icon to v (Click the icon to view the present value table.) (Click the icon to view the future value table.) Read the requirements (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table. Kerwin Industries invest in the equipment because its NPV is discount the a Reference - The refurbishment provides a ginal NPV of the equipment. Therefore, the refurbishment Data Table 3% Praesnt vaus of x Otso Osso corossa ossesso dos desde su deos Reference Xa Reference toe oor ons oorsion des seda veedo 0183 89 cent Value of Annuity of Periode 1% 383 eriods Year Year Year Year Year Year $262.000 $250.000 5227.000 S213,000 S203.000 $178,000 499 Print Done uture Value of Annuity of S1 100 2080 2040 2050 2080 2.100 3.091 3.124 3.168 9.16 $246 3310 5509 5418552856575867 8.1086.9556.8106.5777.154 SESS6802 7.662 7.850 10.089 104 11.436 2.300 11.464 12578 15.937 17.549 19.397 12808 13.486 10.640 18 15518 12345 18.882 21.495 24528 23.029 33.089 42.21948.497 15.974 17.08818283 3401527.975 45.40834581 50.818 18.599 20.024 21.579 23.27 27.152 31.772 37.28043.342 51.660 60.96572095 24.297 28.870 . $3.066 38.766 45.762 57.279 13.092 9,035 19.0 38.628284.688 47.575 56.088 68 489 79.068 113.283 164.484 341393553.787580.313 90.9481,181.882 42025 50-5991203 6 8 8 8 US Reference - X SAU 4696.628 328 40 S88" ture Value of Print Done Print Done 8.916 14 10... 11.97415.407 67279,646 3203 20441 098908 17.449 2.380 50.950 5.250 149.371 27375