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Marti Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $925,000
Marti Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $925,000 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.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Requirement 1. Compute this project's NPV using Mart's 14% hurdle rate. Should Marti 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, XXXX Use parentheses or a minus sign for a negative net present value.) Years I 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) Net Cash PV Factor (i Inflow 14%) Present Value
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