Nord 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.) Annuity of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Requirements 1. Compute this project's NPV using Nord's 14% hurdle rate. Should Nord invest in the equipment? 2. Nord could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $76,000 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 Nord 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.) Data table Year 1 $ 262,000 Year 2 250,000 Year 3 226,000 Year 4 214,000 Year 5 201,000 Year 6 177,000 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 7% 8% 9% 10% 12% 14% 15% 16 % 18 % 20% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 Period & 0.923 0.853 0.789 0.731 0.677 0.627 0.582 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 Period 10 0.906 0.820 0.744 0.676 0.614 0.558 0.508 0.463 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 Period 12 0.887 0.788 0.701 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0.870 0.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 Period 16 0.853 0.728 0.623 0.534 0.458 Period 17 0.844 0.714 0.605 0.513 0.436 Period 18 0.836 0.700 0.587 0.494 0416 Period 19 0.828 0.686 0.570 0.475 0.396 Period 20 Period 21 0.811 0.660 0.538 0.439 0.359 0.625 0.557 0.497 0.444 0.397 0.489 0.415 0.388 0.350 0.287 0.356 0.319 0.257 0.368 0.326 0.290 0.229 0.507 0.456 0.432 0.410 0.370 0.335 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0.233 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 0.237 0.215 0.195 0.162 0.135 0.208 0.187 0.168 0.137 0.112 0.182 0.163 0.145 0.116 0.093 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.350 0.296 0.250 0.212 0.180 0.130 0.096 0.081 0.069 0.051 0.038 0.331 0.277 0.232 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.194 0.164 0.116 0.178 0.149 0.104 0.083 0.073 0.070 0.060 0.043 0.031 0.061 0.051 0.037 0.026 0.294 0.242 Period 22 Period 23 0.795 0.634 0.507 0.406 0326 0.252 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0803 0.647 0.522 0.422 0.342 0.278 0.226 0.211 0.197 0.184 0.199 0.164 0.135 0.093 0.184 0.150 0.123 0.083 0.170 0.139 0.112 0.074 0.158 0.125 0.102 0.066 0.146 0.116 0.092 0.059 Period 26 0.772 0.598 0.464 0.361 0.281 Period 27 0.764 0.586 0.450 0.347 0.268 Period 28 0.757 0.574 0.437 0.333 0.255 Period 29 0.749 0.563 0.424 0.321 0.243 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 Period 40 0.672 0.453 0.307 0.288 0.142 0.097 0.057 Period 50 0.608 0.372 0.228 0.141 0.067 0.054 0.034 0.220 0.172 0.135 0.207 0.161 0.125 0.106 0.084 0.053 0.098 0.076 0.047 0.196 0.150 0.116 0.090 0.069 0.042 0.064 0.053 0.044 0.031 0.022 0.066 0.046 0.038 0.026 0.018 0.049 0.040 0.033 0.022 0.015 0.043 0.035 0.028 0.019 0.013 0.016 0.010 0.008 0.030 0.024 0.033 0.026 0.021 0.014 0.009 0.029 0.023 0.018 0.011 0.007 0.026 0.020 0.016 0.010 0.006 0.185 0.141 0.107 0.131 0.082 0.063 0.037 0.099 0.075 0.057 0.033 0.046 0.021 0.022 0.017 0.014 0.008 0.005 0.020 0015 0012 0.007 0.004 0.032 0.022 0.011 0.006 0.004 0.003 0.001 0.001 0.013 0.009 0.003 0.001 0.001 0.001 Periods Period 1 1% 2% 3% 4% 0.990 0.980 0.971 Period 2 1.970 1.942 1.913 Period 3 2.941 2884 2.829 Period Period 5 3.902 3.808 3.717 4.853 4.713 4.580 3.630 4.452 5% 6% 7% 0.962 0.952 0.943 0.935 1.886 1.859 1.833 1.808 2.775 2.723 2673 2624 3.546 3.465 3.387 4.329 4.212 4.100 9% 8% 10% 0.928 0.917 0.909 1.783 1.758 1.736 2.577 2531 2487 3.312 3.240 3.170 3.993 3.890 3.791 Present Value of Ordinary Annuity of $1 20% 16% 12% 18% 14% 15% 0.893 0.877 0.870 0.862 0.847 0.833 1.890 1.647 1.626 1.606 1.588 1.528 2402 2.322 2.283 2.246 2.174 2.106 3.037 2.914 2.855 2.798 2.890 2.589 3.605 3.433 3.352 3.274 3.127 2.991 Period 6 Period? Period 8 Period 9 Period 10 Period 11 Period 12 5.795 5.601 5.417 5.242 5.078 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.858 4.564 4.288 4.160 4.039 4.487 4.344 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.958 4.639 4.303 4.031 8.586 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6145 5.650 5.216 5.019 4.833 4.494 4.192 5.029 4.656 4.327 10.368 9.787 9.253 8.760 8.308 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.197 4.793 4.439 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 6.194 5.680 5.421 Period 13 12.134 11.348 10.635 9.906 9.394 8.853 8.358 7.904 7.487 7.103 6424 5.842 5.583 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.350 9.712 9.108 8.559 8.051 7.606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9:447 8.851 8.313 7.824 6.974 6.265 5.954 Period 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 Period 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8201 7.250 6.467 6.128 Period 19 17.228 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.355 7.356 6.550 6.195 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6259 3.812 3.606 4.078 3.837 5.669 5.162 4.730 5.749 5.222 4.775 5.818 5.273 4.812 5.877 5.316 4.844 5.929 5.353 4.870 5.973 5.364 4.891 6.011 5.410 4.909 6044 5.432 4.925 4.937 6.073 5.451 6.097 5.467 4.948 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 Period 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 Period 23 20.456 18.292 16.444 14.857 13.489 12.303 11.272 10.371 9.550 8883 7718 6.792 6.399 Period 24 21243 18.914 16.908 15.247 13.799 12.550 11.469 10.529 9.707 8.985 7.784 6.835 6.434 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 7.643 6.873 6464 7.896 6.905 6.491 6.118 5480 4.956 Period 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.810 9.929 9.161 7.943 6.935 6.514 6.136 5.492 4.964 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 Period 28 24.316 21.281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 7.984 6.961 6.534 6152 5.502 4.970 Period 29 25.066 21.844 19.188 16.964 15.141 13.591 12.278 11.158 10.198 9370 8.022 6.903 6.551 6.166 5.510 4.975 Period 30 25.808 22.396 19.800 17.292 15.372 13.765 12.409 11.258 10.274 9427 6.055 7.003 6.565 6.177 5.517 4.979 Period 40 32835 27.356 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8244 7.105 6.642 6.233 5.548 4.997 Periv 50 39 198 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 8304 7.133 6.661 6.246 5.554 4.999