Requirement 2. LaChut Industries could refurbish the equipment at the end of six years for $106,000. The refurbished equipment could be used one more year, providing $75,000 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? (HintIn 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 . Use parentheses or a minus sign for negative net present values .) Additional NPV provided from refurbishment

LaChut Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $910,000. 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 requirements. LaChut industries invest in the equipment because its NPV is Requirement 2. LaChut industries could refurbish the equipment at the end of six years for $106,000. The refurbished equipment could be used one more year, providing $75,000 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.) Calculate the additional NPV provided from the refurbishment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Additional NPV provided from refurbishment Chut industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $9; rojocted net cash infiows 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 future value table.) (Click the icon to view the pres (Click the icon to viow the futu: Data table Requirement 1. Compute this project's NPV using LaChut Industries' 14\% hurdle rate. Should Begin by computing the project's NPV (net prosent value). (Round your answer to the nearest present values,) Net present value LaChut Industries Requirement 2. LaChut industries could refurbish the equipment at the end of six years for $ year, providing $75,000 of net cash inflows in Year 7 . In addition, the refurbished equipment w LaChut industries invest in the equipment and refurbish it atter six years? Why or why not? ( H. additional cash outfiow and inflows back to the present value.)