Marti 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 Present Value of $1 table.) Annuity of $1 table.) Read the requirements (Click the icon to view Present Value of Ordinary 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.) Years Year 1 Present value of each year's inflow: (n-1) 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 5 Present value of each year's inflow: (n=5) Year 6 Present value of each year's inflow: (n = 6) Total PV of cash inflows Year 0 Initial investment Net present value of the project Net Cash PV Factor (i Inflow 16%) Present Value Requirements 1. Compute this project's NPV using Marti's 16% hurdle rate. Should Marti invest in the equipment? 2. Marti could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $78,000 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 Marti 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.) (Click the icon to view the projected net cash inflows.) An Data table Re the icon to vieu - X Year 1 $ 260,000 Year 2 253,000 Us ect. (Enter any f de Year 3 225,000 tive net presen Year 4 215,000 Cash PV Fa OW = 1 Year 5 205,000 Y Year 6 177,000 Y Y Y Print Done Totart V Of CasimOWS Year 0 Initial investment Net present value of the project