Petal Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost

$ 930,000

.

Projected net cash inflows are as follows:

Petal Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $930,000 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 Ordinary Annuity of $1 table.) (Click the icon to view Present Value of $1 table.) Read the requirements. Requirement 1. Compute this project's NPV using Petal's 14% hurdle rate. Should Petal 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. Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Present |(i 14%) Inflow Years Value Present value of each year's inflow (n 1) 1 2 (n 2) (n 3) 3 4 (n 4) (n 5) 5 (n 6) T-I-InV Sa--L A.... ? Enter any number in the edit fields and then click Check Answer. LC (n 6) Total PV of cash inflows 10 Initial investment Net present value of the project Enter any number in the edit fields and then click Check Answer. Data Table 1 Year 1 $ 262,000 Year 2 252,000 Year 3 226,000 211,000 Year 4 Year 5 200,000 Year 6 178,000 Print Done Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% e 0.909 0.870 0.862 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.893 0.877 0.847 0.833 0.980 0.907 0.826 0.743 2 0.961 0.943 0.925 0.890 0.873 0.857 0.842 0.797 0.769 0.756 0.718 0.694 0.942 0.864 0.712 0.609 0.971 0.915 0.889 0.840 0.816 0.794 0.772 0.751 0.675 0.658 0.641 0.579 0.888 4 0.961 0.924 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 0.784 5 0.951 0.906 0.863 0.822 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 0.564 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.507 0.456 0.432 0.410 0.370 0.335 0.760 0.623 0.583 0.547 0.933 0.871 0.813 0.711 0.665 0.513 0.452 0.400 0.376 0.354 0.314 0.279 0.853 0.540 0.502 0.404 0.351 0.923 0.789 0.731 0.677 0.627 0.582 0.467 0.327 0.305 0.266 0.233 0.544 0.361 0.308 0.284 0.194 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.460 0.424 0.263 0.225 0.270 0.676 0.558 0.386 10 0.905 0.820 0.744 0.614 0.508 0.463 0.422 0.322 0.247 0.227 0.191 0.162 0.804 0.722 0.527 11 0.896 0.650 0.585 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 0.788 0.208 0.137 12 0.887 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.187 0.168 0.112 0.773 0.601 13 0.879 0.681 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.661 0.340 0.263 0.160 0.099 0.078 14 0.870 0.758 0.577 0.505 0.442 0.388 0.299 0.205 0.141 0.125 0.123 0.108 0.140 0.084 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.065 0.728 0.534 0.394 0.163 16 0.853 0.623 0.458 0.339 0.292 0.252 0.218 0.123 0.107 0.093 0.071 0.054 0.093 0.605 0.146 0.108 17 0.844 0.714 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.080 0.060 0.045 0.700 0.416 0.350 0.250 0.212 0.095 0.081 0.038 18 0.836 0.587 0.494 0.296 0.180 0.130 0.069 0.051 0.686 0.396 0.232 0.116 0.083 0.060 0.043 19 0.828 0.570 0.475 0.331 0.277 0.194 0.164 0.070 0.031 0.673 0.377 0.312 0.215 0.073 0.061 0.037 20 0.820 0.554 0.456 0.258 0.178 0.149 0.104 0.051 0.026 Print Done 6789 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.943 0.935 0.909 0.893 1 0.980 0.971 0.962 0.952 0.926 0.917 0.877 0.870 0.862 0.847 0.833 1.942 1.913 1.783 2 1.970 1.886 1.859 1.833 1.808 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.884 2.829 2.624 3 2.941 2.775 2.723 2.673 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 3.630 3.312 4 3.902 3.808 3.717 3.546 3.465 3.387 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.580 3.993 3.890 5 4.853 4.713 4.452 4.329 4.212 4.100 3.791 3.605 3.433 3.352 3.274 3.127 2.991 5.076 3.685 6 5.795 5.601 5.417 5.242 4.917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.498 3.326 6.472 6.002 5.786 4.039 7 6.728 6.230 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 3.812 3.605 7.020 5.971 5.747 8 7.652 7.325 6.733 6.463 6.210 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 7.108 6.802 4.303 8.566 8.162 7.786 7.435 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.031 8.530 6.710 5.019 4.192 10 9.471 8.983 8.111 7.722 7.360 7.024 6.418 6.145 5.650 5.216 4.833 4.494 7.499 10.368 8.760 8.306 7.139 6.495 5.234 4.656 11 9.787 9.253 7.887 6.805 5.938 5.453 5.029 4.327 11.255 10.575 5.197 4.439 8.384 6.814 6.194 12 9.954 9.385 8.863 7.943 7.536 7.161 5.660 5.421 4.793 11.348 10.635 12.106 11.296 10.563 7.487 6.424 9.986 13 12.134 9.394 8.853 8.358 7.904 7.103 5.842 5.583 5.342 4.910 4.533 4.611 9.899 8.244 5.008 14 13.004 9.295 8.745 7.786 7.367 6.628 6.002 5.724 5.468 13.865 12.84911.938 11.118 10.380 5.092 7.606 6.142 15 9.712 9.108 8.559 8.061 6.811 5.847 5.575 4.675 14.718 13.578 12.561 15.562 14.29213.166 12.166 16.398 14.99213.754 12.65911.690 10.82810.059 17.226 15.67814.324 13.134 12.08511.15810.336 18.046 16.351 14.877 13.590 12.46211.47010.594 11.652 10.83810.106 11.274 10.477 8.851 7.824 6.974 4.730 9.447 8.313 6.265 5.954 16 5.669 5.162 5.749 5.222 4.775 17 9.763 9.122 8.544 8.022 7.120 6.373 6.047 7.250 6.467 5.818 5.273 4.812 18 9.372 8.756 8.201 6.128 6.550 19 9.604 8.950 8.365 7.366 6.198 5.877 5.316 4.844 9.129 6.623 5.929 20 9.818 8.514 7.469 6.259 5.353 4.870 Print Done