Marti Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year l Projected net cash inflows are as follows: (Click the icon to view the proyected net cash inflows.) E (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 reguirements. Requirement 1 . Compute this project's NPV using Marti's 16% 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, X.XXX. Us for a negative net present value.) Present Net Cash Inflow PV Factor Years (i = 1696) Value Present value of each year's inflow: Enter any number in the edit fields and then continue to the next question deciding whether to automate one phase of its production process. The manufacturing equipment has a six-ye jected 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 tat ad the tequirements 1 1 (n 1) 2 (n 2) 3 (n 3) 4 (n-4) 5 (n=5) 6 (n 6) Total PV of cash inflows nter any number in the edit fields and then continue to the next question Net present value of the project Nartindustries- I invest in the equipment. .atthveendofsix yearsfor$10 Requirement 2. Marti could refurbish the equipment at the end of six years for $104,000. The refurbished equipment could be used one more year $77,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $54,000 residual value at the end of year 7. Should Ma equipment and refurbish it after six years? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back Enter any number in the edit fields and then continue to the next question. Read the requirements Casn Present (i=16%) Value (outflow)/inflow L Refurbishment at the end of Year 6 (n-6) Cash inflows in Year 7 (n = 7) Residual value (n 7) Net present value of the refurbishment Refurbishment at the end of Year 6 (n 6) Cash inflows in Year 7 (n-7) Residual value (n 7) Net present value of the refurbishment The refurbishment provides a NPV The refurbishment NPV is | to overcome the original NPV of the equipment. Therefore, the refurbishment wj alter Marti Industries' original decision regarding the equipment investment. Marti Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year l Projected net cash inflows are as follows: (Click the icon to view the proyected net cash inflows.) E (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 reguirements. Requirement 1 . Compute this project's NPV using Marti's 16% 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, X.XXX. Us for a negative net present value.) Present Net Cash Inflow PV Factor Years (i = 1696) Value Present value of each year's inflow: Enter any number in the edit fields and then continue to the next question deciding whether to automate one phase of its production process. The manufacturing equipment has a six-ye jected 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 tat ad the tequirements 1 1 (n 1) 2 (n 2) 3 (n 3) 4 (n-4) 5 (n=5) 6 (n 6) Total PV of cash inflows nter any number in the edit fields and then continue to the next question Net present value of the project Nartindustries- I invest in the equipment. .atthveendofsix yearsfor$10 Requirement 2. Marti could refurbish the equipment at the end of six years for $104,000. The refurbished equipment could be used one more year $77,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $54,000 residual value at the end of year 7. Should Ma equipment and refurbish it after six years? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back Enter any number in the edit fields and then continue to the next question. Read the requirements Casn Present (i=16%) Value (outflow)/inflow L Refurbishment at the end of Year 6 (n-6) Cash inflows in Year 7 (n = 7) Residual value (n 7) Net present value of the refurbishment Refurbishment at the end of Year 6 (n 6) Cash inflows in Year 7 (n-7) Residual value (n 7) Net present value of the refurbishment The refurbishment provides a NPV The refurbishment NPV is | to overcome the original NPV of the equipment. Therefore, the refurbishment wj alter Marti Industries' original decision regarding the equipment investment
