(Present value) (Future value) Present Value Annuity Future value annuity

LaChut Industries is deciding whether to automate one phase of ts 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 the present value table.) (Click the icon to view the present value annuity table.) (Click the icon to view the future value table) (Click the icon to view the future value annuity table) Read the recements Requirement 1. Compute this project's NPV using LaChut Industries' 14% hurdle rate. Should LaChut Industries invest in the equipment? Why or why not? Begin by computing the projects NPV (het present value). (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values) Net present value 1 Data Table Requirements Year. 1 $264,000 Year 2 $252,000 $227,000 Year.3 1. Compute this project's NPV using LaChut Industries 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. LaChut Industries could refurbish the equipment at the end of six years for S103,000. The refurbished equipment could be used one more year, providing 578.000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $52.000 residual value at the end of Year 7. Should LaChut 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.4 $211,000 5201,000 Year.5. Year.6 $175,000 Print Done Print Done Reference Present Value of $1 Periods 1% 2% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 0.990 0.980 0.971 0.962 0.952 0.943 0.928 0.909 0.893 0.877 0.882 0.347 0.833 1 Period 0.9800.961 0.9430.925 0.9070.890 0.8570.828 0.797 0.769 0.7430.7180.694 12 Period 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.875 0.641 0.6090.579 3 Period 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.638 0.592 0.5520.5180.482 14 Period 0.951 0.908 0.863 0.822 0.784 0.747 0.681 0.821 0.5670.519 0.478 0.437 0.402 15 Period 0.942 0.888 0.837 0.790 0.748 0.705 0.630 0.564 0.507 0.458 0.410 0.370 0.335 16 Period 0.933 0.871 0.813 0.750 0.7110.885 0.583 0.513 0.452 0.400 0.3540.3140.279 17 Period 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.4040.351 0.305 0.2880.233 8 Period 0.914 0.837 0.7680.703 0.845 0.5920.500 0.424 0.3810.308 0.263 0.225 0.194 9 Period 0.905 0.820 0.744 0.8780.614 0.558 0.463 0.383 0.322 0.270 0.227 0.191 0.162 10 Period 0.898 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 11 Period 0.8870.788 0.701 0.625 0.5570.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 12 Period 0.87 0.773 0.681 0.601 0.530 0.460 0.368 0.290 0.229 0.182 0.145 0.116 0.093 13 Period 0.8700.758 0.6610.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 14 Period 0.861 0.743 0.842 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 15 Period 0.820 0.673 0.5540.458 0.377 0.312 0.215 0.14 0.1040.073 0.051 0.037 0.026 20 Period 0.780 0.610 0.478 0.375 0.295 0.233 0.148 0.092 0.05 0.038 0.024 0.0160.010 125 Period 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.0200.012 0.007 0.004 30 Period 0.872 0.453 0.307 0.2080.1420.097 0.048 0.022 0.011 0.005 0.003 0.001 0.001 40 Print Done - X Reference 1.728 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.000 1.080 1.100 1.120 1.140 1.180 1.180 1.200 Period 21.020 1.0401.0011.082 1.103 1.1241.168 1.210 1.254 1.300 1.348 1.392 1.440 Period 31.0301.0011.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.581 1.843 Period 41.041 1.082 1.128 1.170 1.210 1.262 1.360 1.4841.574 1689 1.811 1.939 2.074 Period 5 1.0511.104 1.159 1.217 1.276 1.338 1.4891.611 1.762 1.925 2.100 2.288 2.488 Period 61.0621.121.1941.265 1.3401.419 1587 1.772 1.9742.195 2.438 2.700 2.986 Period 71.072 1.1491 230 1.3101.407 1504 1.7141.949 22112.502 2.828 3.185 3.583 Period 8 1.0831.1721 287 1.369 1.47715941.851 2.144 2.476 2.8533278 3.759 4.300 Period 91.0941.1951.305 1.423 1.551 1.889 1.999 2.3582.7733 252 3.803 3.803 4.435 5.160 Period 1.105 12191.344 1.480 1.829 1.791 2.159 2.594 3.108 3.707 4.411 4.411 5.234 8.192 110 Period 1.116124313841.539 1.710 1.898 2.332 2.853 3.479 4220 5.117 6.178 6.1176.1787.430 11 Period 1.1271 2681.428 1.801 1.796 2.0122.518 3.138 3.898 4.818 5.9387 288 8.916 12 Period 1.13812941.469 1.8651.888 2.133 2.720 3.452 4.363 5.4926.8888.599 10.699 13 Period 1.14913191.513 1.732 1.980 2.261 2.937 3.797 4.887 62617.988 10.147 12.839 114 Period 1.1611 348 1.558 1.801 2.0792.397 3.172 4.177 5.4747.1389.288 11.974 15.407 15 Period 1 2201.4961.800 2.1912.653 3.207 4.6616.727 9.848 13.743 19.481 27.393 38.338 Period 1.2821.641 2.094 2.6663.388 4.292 6.848 10.835 17.000 26.462 40.87462.669 95.396 25 Period 1.348 1.811 2.427 3.243 4.322 5.743 10.06317.449 29.960 50.950 85.850 143.371 237.378 Period 1.489 2 2083 262 4.8017.040 10.286 21.725 45.259 03.051188.884378.721750 3781.469.772 20 20 40 Print Done Reference -X Present Value of Annuity of $1 Periods 1% 2% 3% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 0.990 0.980 0.971 0.002 0.952 0.043 0.928 0.909 0.893 0.877 0.862 0.847 0.833 1 Period 1970 1.942 1.913 1.8881.8591.833 1.7831.7361.8901.847 1.605 1.588 1.528 2 Period 2.9412.8842.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 2.2482 174 2.106 3 Period 3.902 3.808 3.7173.630 3.5483.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 14 Period 4.853 4.713 4.580 4.452 4.329 4.212 3.9933.791 3.605 3.433 3.274 3.127 2.991 15 Period 5.795 5.601 5.417 5.242 5.078 4.917 4.823 4.355 4.111 3.8893.685 3.498 3.326 16 Period 6.728 6.472 6.230 0.002 5.7885.582 5.2004.888 4.584 4.288 4.0393.812 3.805 7 Period 7.852 7.3257.020 0.733 6.483 6.210 5.7475.335 4.9884.639 4.344 4.0783.837 18 Period 8.566 8. 1827.788 7.435 7.108 6.802 6.247 5.7595.328 4.948 4.607 4.303 4.031 19 Period 9.471 8.9838.530 8.111 7.722 7.380 6.7108.145 5.6505.216 4.833 4.494 4.192 10 Period 10.388 9.7879.253 8.7808.300 7.887 7.1396.495 5.938 5.453 5.0294.856 4.327 11 Period 11.255 10.575 9.954 9.3858.883 8.384 7.538 6.814 6. 1945.860 5.197 4.793 4.439 12 Period 12.13411.348 10.836 9.988 9.3948.853 7.804 7.1038.424 5.842 5.342| 4.910 4.533 13 Period 13.00412.108 11 290 10.563 9.899 9.295 8.244 7.367 0.628 6.002 5.468 5.0084611 14 Period 13.885 12.84 11.93811.118 10.380 9.7128.5597.806 6.811 6.142 5.575 5.092 4.675 15 Period 18.046 16.35114.877 13.590 12.462 11.470 9.818 8.514 7.489 6.623 5.929 5.363 4.870 120 Period 22.02319.523 17.413 15.622 14.09412.783 10.875 0.077 7.8436.873 6.097 5.487 4948 25 Period 25.80822.398 19.600 17.292 15.372 13.765 11.258 0.427 8.055 7.003 6.1775.517 4.979 30 Period 32.835|27.356 23. 115 19.792 17.15 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 40 Print Done X Reference 14% 1.000 2.140 3.440 4.921 6.610 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 22.010 2.020 2030 2040 2.050 2.050 2.080 2.100 2.120 Period 3 3.0303.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 Period 4 4.060 4.122 4.1844.248 | 4.310 4.375 4.506 4.641 4.770 Period 5 5.101 5.204 5.309 5.416 5.526 5.6375.887 8.105 6.353 Period 66.152 6.308 6.468 6.633 6.802 6.975 7.3367.716 8.115 Period 77.214 7.4347.6627.898 8.142 8.394 8.923 9.487 10.089 Period 8 8.286 8.5838.8929.214 9.549 9.897 10.637 11.438 12.300 Period 9 9.369 9.755 10.15 10.583 11.027 11.491 | 12.488 13.579 14.776 Period 10.462 10.950 11.48412.006 12.578 13.181 14.48715.937 17.549 10 Period 11.587 12. 169 12.80813.486 14.207 14.972 16.645 18.531 20.655 11 Period 12.683|13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 12 Period 13.809 14.680 15.818 16.627 17.713 18.882 21.495 24.523 28.029 13 Period 14.94715.974 17.086 18.292 19.599 21.015 24.21527.975 32.393 14 Period 16.097|17.29318.599 20.024 21.579 23.276 27.152 31.772 37.280 15 16% 1.000 2.160 3.506 5.086 6.877 8.977 11.414 14.240 17.519 21.321 18% 1.000 2.180 3.572 5.215 7.154 9.442 12.142 15.327 19.088 23.521 20% 1.000 2.200 3.640 5.388 7.442 9.930 12.916 16.499 20.799 25.959 8.536 10.730 13.233 18.085 19.337 23.045 25.733 28.755 32.150 27.271 30.850 34.931 39.581 32.089 38.788 42.219 48.497 37.581 43.872 50.818 59.198 43.842 51.860 60.985 72.035 Period 22.019 24.297|26.87029.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 148.628 188.688 20 Period 28.243|22.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.803 471.981 125 Period 34.785 40.568 47.57556.085 68.43979.058 113.283 164.494241.333 356.787 530.312790.948 1.181.882 30 Period 48.886|60.402 75.401 05.026120.800154.762259.057 442.593767.0911.342.025|2.360.757 4.163.2137.343.858 40 Print Done