Please use the data to answer the requirements. I also provided the 2 tables to help assist answering. Thank you.
koo Industries is deciding whether to automate one phase of its production process. The n six-year life and will cost $915,000. Projected net cash inflows are as follows: (Click the icon th view the nrniected net cash inflows.) the icon to view Prese Data table rate. Should lkoo inves t. (Enter any factor am ve net present value.) Year 6 Present value of each year's inflow: (n=6) Total PV of cash inflows Ikoo Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. 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 Requirement 1. Compute this project's NPV using Ikoo's 14% hurdle rate. Should Ikoo 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.) Ikoo Industries invest in the equipment. Requirement 2. Ikoo could refurbish the equipment at the end of six years for $104,000. The refurbished equipment could be used one more year, providing $75,000 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 Ikoo 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.) Calculate the NPV of the refurbishment. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for cash outflows and for a negative net present value.) Calculate the NPV of the refurbishment. (Enter any factor amounts to three decimal places, X.XXX. Use parentheses or a minus sign for cash outflows and for a negative net present value.) The refurbishment provides a NPV. The refurbishment NPV is to overcome the original NPV of the equipment. Therefore, the refurbishment alter Ikoo Industries' original decision regarding the equipment investment. The refurbishment provides a NPV. The refurbishment NPV is NPV of the equipment. Therefore, the refurbistiment alter Ikoo Industries' original decisior equipment investment. The refurbishment provides a NPV. The refurbishment NPV is to overcome the origina NPV of the equipment. Therefore, the refurbishment equipment investment. alter Ikoo Industries' original decision regarding the a minus sign for cash outflows and for a negative net present value.) Present Value of $1 Draeant Valua af Rrdinanu Annuth af 1
