lkoo Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $930,000. 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.Xxx. Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Present Years Inflow (1-14%) Value Data Table Present value of each year's inflow: 1 (n 1) 2 (n 2) 3 (n-) 4 (n-4) 5 (n- 5) 6 (n-6) Year 1 S Year 2 Year 3 Year 4 Year 5 Year 6 261,000 253,000 226,000 211,000 200,000 175,000 Total PV of cash inflows 0 Initial investment Net present value of the project Print Done Ikoo Industries Vinvest in the equipment. Requirement 2. Ikoo could refurbish the equipment at the end of six years for $103.000. The refurbished equipment could be used one more year, providing $74,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $53,000 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 outtlow and inflows back to the present value.) Calculate the NPV o e refurbishment. Enter any actor amounts to three decima places, . . Use parentheses or a minus s o es and or a ne ative net present n or cas alue. ou Cash PV Factor Present Value (outflow)/inflow (l'14%) Refurbishment at the end of Year 6 (n- 6) Cash inflows in Year 7 (n-n Residual value (n 7) Net present value of the refurbishment NPV. The refurbishment NPV is to overcome the original NPV of the equipment. Therefore, the refurbishment | alter lkoo Industries' original decision regarding the