Problem #4 Walker Industries is deciding whether to automate one phase of its production process. The manufacturing equipment they would need has a six-year life and will cost $905,000. Projected net cash inflows are as follows: YEAR 1 262,000 2 255,000 224,000 4 210,000 5 204,000 6 173,000 Requirements: 1) Compute this project's NPV using Walker Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 3