Points: 0 of 2 Save Kerwin Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $900,000, Projected net cash inflows are as follows: (Click th (Click th Requirements - X Data table (Click th Read the reg 1. Compute this project's NPV using Kerwin Industries' 16% hurdle rate. Should the company invest in the equipment? Why or why not? Year 1. $264.000 Requiremen Begin by con Net present t 2. Kerwin Industries could refurbish the equipment at the end of six years for $105,000. The refurbished equipment could be used one more year, providing $73,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $54,000 residual value at the end of Year 7. Should Kerwin 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.) Year 2 $251,000 Year 3 $224.000 Year 4. $213,000 Year 5. $205,000 Year 6. $178,000 Print Done Print Done