koo Industries is deciding whether to automate one phase of its production process. The manufacturing equipment as a six-year life and will cost $900,000. 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 Use the following table to calculate the net present value of the project (Enter any factor amounts to three decimal places, X XXX Use parentheses or a minus sign for a negative net present value.) Data table \begin{tabular}{lll} \hline Year 1 & $ & 263,000 \\ Year 2 & 255,000 \\ Year 3 & 224,000 \\ Year 4 & 215,000 \\ Year 5 & 200,000 \\ Year 6 & 174,000 \\ \hline \end{tabular} Print Done Requirements 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 $101,000. The refurbished equipment could be used one more year, providing $72,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $51,000 residual value at the end of year 7 . Should lkoo 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:)