Question 5 10 pts ABC Corp an opportunity to upgrade a piece of equipment at a cost of $480,000 The new equipment is expected to generate the following cash flows Year 1 $80,000 Year 2 $150.000 Year 3 $50,000 Year 4 $140,000 Year 5 562.000 Year 6 $56,000 ABC Corp assumes a hurdie rate of 14% ABC Corp's manager believes there will be an ability to refurbish the equipment at the end of the equipment's 6-year life. The refurbishment is expected to add one year of useful life to the equipment and will cost $50,000. If the equipment is not refurbished, the salvage value will be $0 at the end of year 6. If the equipment is refurbished, it will generate $85,000 in cash flows in year 7 and the salvage value will be $40,000 at the end of year 7. By bow much does the NPV of the project change if the company undertakes the refurbishment as compared to disposing of the machine at the end of year 6? Note: Your calculated answer may vary by-$100 from the listed answers depending on your calculation method (ie, financial calculator vs. PV table Present Value of $1 Resinde 4 S 96 #10 5 6 MacBook Pro 1 & R T Y F G H 7 8 U J Se TO V B N M 9 K