Question Help 0 LaChut Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905.000 Projected net cash inflows are as follows: E (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) B (Click the icon to view the future value table) (Click the icon to view the future value annuity table) Read the requirements 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 project's NPV (net present value). (Round your answer to the nearest whole dollar Use parentheses or a minus sign for negative net present values) Nel present value S LaChut Industries invest in the equipment because its NPV is Requirement 2. LaChut industries could returbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, providing $77,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a 553,000 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? (Mint in addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value Calculate the additional NPV provided from the refurbishment (Round your answer to the nearest whole dollar Use parentheses or a minus sign for negative nel present values.) Additional NPV provided from refurbishments The refurbishment provides a investment NPV The refurbishment NPV is to overcome the original NPV of the equipment. Therefore, the refurbishment Walter LaChut Industries original decision regarding the equipment Enter any number in the edit fields and then continue to the next question 1% hurdle rate. Should LaChut Industries invest in the equipment? Why of why not? answer to the nearest whole present values. Data Table is Vear 1 end of six years for $102,000 tries invest in the equipmen ar, providing $77,000 of net cas h addition to your answer to Rem Year 2 Year 3 ur answer to the nearest w $264,000 $252.000 $224,000 $210,000 $200,000 $176,000 Year 4 net present values.) Year 5 Year 6 to over efurbishment alter Print Done stion (Liukule Con to view the present value annuity table) (Click the icon to view the future value annuity table.) hut Industries' 14% hurdle rate. Should LaChut Industries invest in the equipment? Why or why not? e). (Round your answer to Requirements because its NPV is quipment at the end of six Lild LaChut Industries inve 100 of net cash in answer to Requir 1. Compute this project's NPV using LaChut Industries' 14% hurdle rate Should the company invest in the equipment2 Why or why not? 2. LaChut Industries could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, providing $77,000 of net cash inflows in Year 7 In addition, the refurbished equipment would have a $53,000 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.) ament (Round your answe bishment NPV is Valter Lac Print Done to the next question o 5 of 13 (0 complete) Reference automate one phase dnet cash inflows.) bws are as follows: walue table.) alue table.) PV using LaChut Indo 2. 3 et present value). (Rou me equipment becaus Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0,980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.980 0,961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0718 0.694 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0579 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.933 0871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0314 0279 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0305 0266 0233 9 0.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 05570.497 0.397 0.319 0.257 0208 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0530 0469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0861 0.743 0.642 0.555 0.481 0.417 0.315 0.2390.183 0.140 0.108 0.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0312 0.215 0.149 0.104 0.073 0.051 0.037, 0026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.453 0307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 refurbish the equipme of Year 7. Should Lag et cash inflows in Ye- to Requirement 1, di m the refurbishment ents NPV. The refurbishme alter LaChut Indust Print Done Done then continue to the next question -- -) - 5 of 13 (0 complete) Reference - Future Value of $1 Periods 1% WWW ds) 6789m UNNN VET v v clapjg==|| Jone - tal folds 222.233346 I - La Firs 3. 3 + +5999 color w8 QS6 10692 12839 15 407 8379 195396 237376 WN Print continue to the next question 5 of 13 (0 complete) utomate one phase of net cash inflows.) Reference are as follows: alue table.) de table.) "V using LaChut Indust present value) (Roung e equipment because i Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1970 1.942 1913 1886 1859 1833 1.783 1.736 1.690 1647 1.605 1.566 1528 2941 2884 2.829 2775 2.723 2673 2.577 2.487 2.402 2322 2246 2174 2106 4 3.902 3.808 3.717 3.630 3546 3465 3.312 3.170 3037 29142.798 2.690 2589 5 4.853 4.713 4580 4452 4.3294212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4917 4623 4355 4.111 3.889 3685 3.498 3326 7 6.728 6.472 6.230 6.002 5786 5.582 5.206 4.8684564 4288 4039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.7475.335 4968 4639 43444078 3.837 9 8.566 8.162 7.786 7.435 7108 6.802 6.247 5.759 5328 4946 4.607 4303 4031 10 9.471 8.983 8.530 8.1117 722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 11 10.3689.787 9.253 8.760 8306 7.887 7.139 6.495 5.938 5.4535.029 4656 4327 12 11 255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.1945.660 5.197 4.793 4439 13 12 134 11.348 10.635 9.9869.394 8.853 7.904 7 103 6.424 5.842 5.342 4910 4533 14 13.004 12 106 11.296 10.563 9.899 92958.244 73676.628 6.002 5.468 5008 4.611 15 13.865 12.849 11.938 11.118 1038097128.559 7606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.5147.469 6.623 5.929 5.353 4870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 30 25 808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4979 40 32835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.1056.233 5.548 4.997 efurbish the equipment Year 7. Should Lach cash inflows in Ye Requirement 1, de the refurbishment. (R nts IPV. The refurbishment Iter LaChut Indust Print Done men continue to the nexrquesun 5 of 13 (0 complete) Reference Deniods % 28 38 | 4% Future Value of Annuity of $1 | 64 BBS | 100% | 120% 14: 000 1000 1000 200 010 3246 2310 the Curi LO cp ov) } : to colo cn to colo 2016 us tooon 242 1211 1414 1 240 756 82B2 1936 Bus 5% sam2494%B528 yymm 29 249 21342 68 | 71 987 767.091 | 1342025 | 2 360 7574 10 2137343 868 Print Done Dame