Please answer the following requirements correctly.
Venu 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) Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements - Requirement 1. Compute this project's NPV using Venu's 16% hurdle rate. Should Venu 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 Years Inflow (i = 16%) Value X Requirements Present value of each year's into 1 in = 1) 2 in 2 1. Compute this projects NPV using Venu's 18% hurdle rate. Should Venu 3 in = 3) invest in the equipment? 4 (n = 4) 2. Venu could refurbish the equipment at the end of six years for $100,000. The refurbished equipment could be used one more year, providing 574,000 of net 5 in = 5) cash inflows in year 7. Additionally, the refurbished equipment would have a in = 6) $55.000 residual value at the end of year 7. Should Venu invest in the equipment and refurbish it after six years? (Hint: In addition to your answer to Total PV of cash inflows Requirement 1, discount the additional cash outflow and inflows back to the present value) o Inilnvestment Nel present value of the project Print Done Enter any number in the edit fields and then click Check Answer 3 parts remaining Clear All Data Table - X Year 1 $ 262,000 Year 2 253,000 Year 3 226,000 Year 4 211,000 Year 5 200,000 Year 6 178,000 Print Done - 10% 0909 0926 0751 0683 0621 % 0993 0797 072 0636 0567 0.507 0452 0404 0564 0513 0467 0424 0366 0361 0322 Periods 2% 3% 0990 0.980 0971 2 0.90 0.961 0.943 3 0971 042 0915 4 ( 961 0924 0868 5 0951 0906 10863 0942 088 0.837 7 093 0871 0813 0923 0853 0769 9 0.914 0837 0766 10 0.905 0.620 0.744 | 0806 0804 0.722 12 0.867 0766 0701 13 0879 0.773 0681 14 0870 0.758 0.661 15 0861 10743 | 0.642 16 0853 0.726 0623 17 0844 0714 0 605 18 0836 10.700 0567 19 10.828 0686 0570 20 0820 0673 0554 21 0811 0660 0538 22 0803 0647 0522 23 0795 0.634 0507 24 0.768 0.622 0492 25 0760 0610 0478 26 0.TT2 0566 0464 27 0 TFA 0.566 0450 28 0.757 0574 0437 29 0749 0563 0.424 4719 han 0 093 Present Value of $1 4% 5% 6% 7% % % 0362 0952 0.943 0955 0926 0917 0.925 0907 0.890 0873 057 042 0889 0864 0.340 0816 0794 0772 0.855 0823 0792 0.763 0.735 0708 0.822 0.784 0.747 0713 10.68] 0650 0790 0746 0.705 0666 0630 0596 0760 0.711 0.665 0625 0.583 047 0731 0.67 0.627 0582 0540 0.502 0.703 0645 0.592 0544 0 500 ( 460 0676 10.614 0558 0508 0463 0422 0.650 0.585 0.527 0475 0429 0398 0.625 0.557 0497 0.444 0307 035 10601 0.530 0 462 00415 036B 0326 0577 0.505 0.442 0388 0340 0299 0.555 0461 0417 0362 0315 0275 1534 0456 0304 0339 0292 0252 0513 0436 0371 0317 0270 0231 044 0416 0300 0206 0.250 0212 0.475 0396 10.331 0277 0.232 0 194 0.456 0377 0312 0258 0.215 Dire 0.439 0359 0294 | 0242 0199 0.164 0.422 0342 10278 | 0226 0.184 0 150 0406 0326 0262 0211 0.170 0.138 0390 0310 0.247 10 197 0.156 0126 0375 10295 0233 0 184 0 146 0.116 0.361 0.28 | 0220 0.172 0 135 0106 0.347 0266 0207 0 161 0125 0096 0333 0255 0.196 0 150 0.116 0000 0321 0243 0.185 041 0107 0.082 4 anon may 0350 0319 0290 0263 0239 14% 15% 087 0.870 0.78 0.756 0.675 0.658 0592 0.50 0.519 0497 0.456 0.432 0400 0.376 0.351 0327 0.308 0284 0270 0247 0237 0215 0.208 0187 0182 0.163 0 160 0141 0140 0123 0123 0107 0108 0093 0.095 0 001 0043 0070 0073 0061 0064 0053 0056 0046 0049 0040 0043 0035 0030 0030 0033 0.026 0029 0023 0026 0020 0022 0017 node 16% 18% 20% 0.862 0847 0333 0.743 0716 064 0.64] 0.609 0579 0552 0.516 0482 0476 0437 0402 0410 0370 0335 0.354 0314 0.279 0305 0266 02.33 0.263 0225 0 194 0.227 0.191 012 0195 0.162 0.135 0.168 0 137 0.112 0.145 0.116 0 125 0 099 0078 0.108 0084 0065 0.003 0.07] 0054 0.090 0.060 0.069 0.051 0038 0060 0.043 10001 0051 0.03710026 0044 0 031 0022 0038 10026 0018 0033 0022 0.015 0028 0.019 0013 0.024 0.016 | 0010 0.021 0014 0.009 0018 0.011 0 007 0016 0010 0.006 0014 0 006 0.005 hran, 0287 0257 0229 0205 0183 0163 0 146 0 130 0116 0104 0093 0063 0074 0066 0059 0045 0218 0199 0180 0164 0 149 01.35 0123 0112 0102 0092 0064 0076 0069 0063 nac 0055 0047 0042 0037 n99 1941 an 29 30 0.749 0.742 0.321 0.308 0 243 0231 0.185 0.174 0.082 0.075 0.063 0.057 0.141 0.107 0.131 0.099 0.067 0.046 V.UZO 0.022 0.020 0.020 0.017 0.015 0.016 0.014 0.012 0.563 0.552 0.453 0.372 0.010 0.008 0.007 0.000 0005 0.004 40 0.424 0.412 0.307 0.228 0.672 0.208 0.142 0.097 0.032 0.037 0.033 0.011 0.003 0.022 0.005 0.004 0.003 0.001 0.001 50 0.608 0.141 0.087 0.054 0.034 0.021 0.013 0.009 0.001 0.001 0.001 12% 093 1690 2402 3.037 365 CT 44% 0877 1.647 2.322 2914 3433 3889 4288 4.639 4.946 5.216 4.111 4564 1968 5.328 5650 Present Value of Ordinary Annuity of $1 Periods 1% 2 3% % 5% 5% 7% 3 9% 10% 0990 0990 0371 0 062 957 1943 0935 0926 0917 0909 2 1.970 11.942 1913 1.886 1859 1833 1808 1783 1759 1.736 241 2004 2829 2.75 2723 26 2.624 257 2531 2487 3902 3.803 3.717 3.630 3546 3.465 3387 3.312 3240 3170 4.853 4713 4580 4.452 4.329 4212 410 393 390 3.791 6 5.795 5.60] 5417 5242 15.076 4917 4.767 4623 4.4$ 4355 7 6.728 647216230 6.002 5786 5582 5389 5206 5033 4868 8 7652 7.325 17020 6.733 6.463 6210 5971 5.747 5.535 5.335 9 8566 8.162 7786 7.435 7.108 6802 6515 6247 5905 5.79 10 9.471 8993 6530 6 111 7722 7360 7024 6710 6418 6.145 11 10.366 19787 9253 8760 8306 7887 7499 7139 6805 6495 12 1.255 1057519954 9365 8863 8384 7943 7536 7161 6814 13 2134 11.348 | 10.635 | 9966 9304 8853 8358 7904 7487 7103 14 3004 |2 106 | 11.206 | 10 56319999 9295 8745 8244 7786 1367 15 13.865 | 12 849 | 11938 | 11 118 | 10.30 19712 9 106 8559 8061 7606 16 14718 | 13576 | 12.561 | 11652 | 10.88 | 10 106 19447 8851 8313 7824 7 15.562 | 14.292 | 13 166 | 12 166 | 11.274 10 477 9.763 9122 6.544 6022 18 16 398 | 14.992 | 13.754 | 12 659 | 11.80 10 828 | 10059 9372 6756 6204 19 17226 | 15.678 | 14.324 | 13.134 | 12065 | 11 156 | 10 336 1960M 6950 8365 20 18 046 | 16 351| 14.877 | 3590 | 1248 | 11.470 | 10.594 | 9818 9129 8514 21 18 857 | 17011 | 15.415 | 14029 | 12821 | 11.764 |10.836 | 10017 2292 8649 22 19.660 | 17658 | 15.937 | 14451 13 13 12 042 | 11.061| 10 20119442 8.772 3 20.456 | 18 292 | 16.444 | 14857 | 1348 12303 | 1.272 | 103719580 |8883 24 21.243 18914| 16.936 | 15 247 13 79 12 550 11.48 10.529 19707 8995 25 22.023 | 19523 | 17413 | 15622 | 14.04 | 12.783 | 11.654 | 10.675 | 9823 907 26 22 795 | 20121 17877 15 963 14.375 13.003 | 11.826 | 10 81019929 9161 23.560 | 201707 18327 16 330 | 14.643 13211 11.987 | 10 935] 10.027 9.237 23 24.316 21287 | 18.764 | 16 663 14898 | 13406 |2 137 | 11.051] 10 116 | 9.307 29 25.066 | 2184 | 19.168 | 16 984 15141 13.591 | 12278 11 158 | 10.19819370 25.000 -1 4 Math 5938 6194 6.424 6628 6811 5453 5.660 5842 6002 6.142 15% 1% 0870 0862 1626 1605 2233 2246 2855 2798 3.352 3274 3.734 3685 4 160 4 039 4.437 4344 4.772 4.607 5019 4.833 5.234 15.023 5.421 5. 197 5533 5342 5.724 5.468 5.847 5.575 5954 5 669 6.047 5.749 6.128 5.818 6. 196 587 6.259 5.929 5.312 5.973 6.359 6011 6.399 16044 6.434 073 6.464 6 007 18 20% 047 0633 166 1.528 2.174 2. 106 2690 2599 3.127 2991 3498 3326 3812 13.605 407 3.857 4.203 4.031 4.494 4.192 4.656 4327 4.793 4439 4910 4.533 5008 4.611 5.092 4675 5162 4.730 5222 4 TTS 5273 4812 5316 44844 5353 4370 5.384 4891 5.410 4.909 5.432 4975 5451 4937 5467 4.946 5.480 4.956 5.492 4.964 5.502 4.970 5510 4.975 [41 6974 6 265 7120 6.373 7250 6.467 7366 6550 7469 | 6623 7562 6.667 7645 6.743 7718] 6.792 7.784 6835 1843 6.873 1996 5906 7.93 6.935 7934 6961 8022 69663 O AEC Ting 6.491 6514 6.534 6.51 - 6.118 6.136 8.152 6166 *1 JETA- 11 Ep In HP: 29 30 40 25.066 | 21.844 | 19 16 16 964 | 15.141| 13.591 12278 | 11.153 | 10 19819370 8.022 6.983 25.808 22 396 | 19 600 17 292 15.372 13.765 12.40 | 11258 10.274 | 9427 8055 7003 32.835 | 27 355 | 23.15 19.793 17 159 | 15.046| 13.332 | 11925 | 10 75719779 | 8244 | 7105 30 196 31.424 | 25 730 21.482 16.256 15.762 | 13.801 | 12 233 | 10 962 1996 8.304 7133 6.551 6566 6642 6.166 6.177 6233 5.510 5517 5548 5558 4975 4.979 4997 4999 50 6.661 6246
