Monachino Industries in deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000 Projected net cash inflows are as follows: Click the icon to view the projected net cash inflows) (Click the icon to view the present value table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value table.) (Click the icon to view the future value annuity table) Read the requirements Requirement 1. Compute this project's NPV using Monachina Industries' 14% hurdle rate. Should Monachino Industries Invest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Net present value Data table Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $264,000 $251,000 $224,000 $215,000 $204,000 $177,000 Print Done - Reference Present Value of SI Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.9800.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.8470.833 Period 20.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.7180.694 Period 30.971 0,942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 40.961 0.924 0.888 0.855 0.8230.792 0.735 0,683 0.636 0.592 0.552 0.516 0.482 Period 50.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.4560.410 0.370 0.335 Period 70.933 0.871 0.813 0.760 0.7110.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 80.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.266 0.233 Period 90.914 0.837 0,766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.1910.162 10 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.887 0.788 0.701 0.625 0.5570,497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 11 Period 12 Period 13 Period 14 Period 15 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.861 0.743 0.642 0.555 0,4810,417 0.315 0.239 0.183 0.1400.108 0,084 0.065 0.820 0.673 0.554 0.456 0.377 0.3120.215 0.149 0.104 0.073 0.051 0.037 0.026 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Period 20 Period 25 Period 30 Period 140 0.742 0.5520.412 0.308 0.231 0.174 0,099 0.057 0.033 0.0200.012 0.007 0.004 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 Print Done Reference Future Value of $1 12% 1.939 Periods 1% 2% 3% 4% 5% 6% 8% 10% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.0821.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.0821.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.2301.316 1.407 1.504 1.714 1.949 2.211 2.502 2.8263.185 3.583 Period 8 1.083 1.1721.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.3582.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.6291.791 2.159 2.594 3.106 3.707 4.411 5.234 6,192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 121.127 | 1.268 1.426 1.601 1.796 2.012 2.5183.138 3.896 4.818 5.9367.288 8.916 Period 131.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.8868.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 | 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.4861.806 2.191 2.653 3.207 4.6616.727 9.646 13.743 19.461 27.393 38.338 Period 25 1.282 1.641 2.094 2.666 3.386 4.292 6,848 10,833 17.000 26.462 40.87462.669 95.396 Period 301.348 1.811 2.427 3.243 | 4.3225.743 10.06317.44929,960 50.950 85.850 143.371 237.376 Period 40 1.489 2.208 3,262 4.801 7.040 10,286 21.725 45.25993.051 188.884 378,721750,378 1.469.772 Print Done - x Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.9520.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.9421.9131.886 1.859 1.833 1.783 1.736 1.690 1647 1.6051.566 1.528 Period 3 2.9412.8842.8292.775 2.723 2.673 2.577 2.487 2.402 2.3222.246 2.174 2.106 Period 4 3.902 3.8083.717 3.630 3.546 3.469 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4.8534.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 65.795 5.601 5.417 5.2425.0764.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 Period 76.728 6,472 6.230 6.0025.786 5.5825.206 4.8684.564 4.288 4.039 3.812 3.605 Periods 7.652 7.3257.020 6.733 6.463 6.210 5.747 5.335 4.968 4.6394.344 4,078 3.837 Period 9 8.5668.1627.786 7.435 7.108 6.802 | 6.247 5.759 5.328 4.9464.607 4.303 4.031 Period 9.471 8.9838.530 8.111 7.7227.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 10 Period 11 10.368 9.7879.253 8.760 8.3067.887 7.139 6.495 5.938 5.4535.029 4.656 4.327 Period 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.1945.660 5.1974.793 4,439 12 Period 12,13411.348 10.635 9.9869.3948.853 7,904 7.103 6.424 5.8425.342 | 4.910 4.533 13.00412.106111.29610.563 9.899 9.295 8.244 7.367 6,6286.0025.4685.0084611 Period 14 Period 15 13.865 12.849|11.93811.11810.380 9.712 8.559 7.606 6,811 6.142 5.575 5.092 4.675 Period 20 Period 25 Period 30 Period 40 18.046 16.35 14.877 13.590 12.462 11.4709,818 8.5147.4696.623 5.9295.353 4.870 22.023 19.52317.41315.62214.094 12.78310.6759.077 7.8436.8736.097 5.467 4.948 25,808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.055 7.0036.1775.517 4.979 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.1056.233 5.548 4.997 Print Done Reference 3.506 Future Value of Annuity of SI Periods 1% 2% 3% 4% 5% 6% N% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.00 Period 2 2010 2.020 2030 2040 2050 2.060 2.000 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.0303.060 3.091 3.122 3.1533.1843.2463.310 3.374 3.440 3.572 3.640 Period 4 4.0604.122 4.184 4.246 4310 4.375 4.506 4.6414,779 4.921 5.066 5.215 5.368 Periods 5.101 5.204 5.3095 416 5.526 5.637 5.867 6.105 6.353 6,610 6,877 2.154 7.442 Period 6 6.152 6.30 6.466.633 6.802 6,975 7.336 7.7168.115 3.526 8,977 9.442 9.930 Period 7 7.214 7.434 7.662 7.8988.142 8.394 8.9239.487 10.0189 10.730 11.414 12.142 12.916 Period 8.286 8.5838.89292149549 9,897 10.637 11.43612300 13.231 14.240 15.327 16,499 Period 9 9.369 9.755 10.159 10.58311027 11.49112.48813.579 14.776 16.085 17.519 19.086 20,799 Period 10 10.46210.950 11.464 12.006 12.578 13.181|14.48715.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12.169 12.80813.486 14.20214972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12,683 13.412 14.192 15.026 15.017 16.870 18.977 21.38424.133 27.271 30.850 34.931 39,581 Period 13 13.80914.6801561816.627 17.713 18.882 21.495 24.52328.029 32.089 36.786 42.219 48.497 Period 1414.94715.974 17,086 18 29219.599 21.01524215 27.975 32 393 37.581 43.672 50,818 59.196 Period 1916,09717.29318.599 20.02421.57923.276 27.152 31.772 37 280 43.842 51 660 60.965 72.035 Period 20 22.01924.29726.87029.77833,066 36.786 45.76257.275 72.052 91.025 115.380 146.628186.688 Period 25 28.24332.03036,459 4164647.72754865 73.106 98.347 133.334 181.871 249.214 342.609 471.981 Period 2034.785 40.568 47.57556.08566.43979.058 113.283164,494241.333356.787530.312 790,948 1.181.882 Period 40 48.88660.402 25.401 95.020 120.800 154.762 259,057 442.593 767.0911.342.0252.60.7574.163.2.3 2.143.858 Print Done CX Requirements 1. Compute this project's NPV using Monachino Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Monachino Industries could refurbish the equipment at the end of six years for $100,000. The refurbished equipment could be used one more year, providing $78,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $50,000 residual value at the end of Year 7. Should Monachino Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value.) Print Done