Requirements 1 and 2 please

Sesnie 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. X Requirements Requirement 1. Compute this project's NPV using Sesnie Industries' 14% hurdle ra Begin by computing the project's NPV (net present value). (Round your answer to th| Net present value 1. Compute this project's NPV using Sesnie Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Sesnie Industries could refurbish the equipment at the end of six years for $105,000. The refurbished equipment could be used one more year, providing $73,000 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 Sesnie 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.) Print Done P Do Homework - Chapter 12 Homework - Google Chrome 0 mathul.com/Student/PlayerHomework.aspx?homeworkid=597069473&questionid=1&flushed=falsedd=65037878.centerwin=yes ACG3301: Accounting for Planning and Control-SUMA2021 (Online) Freya Rivera & 06/16/21 9:30 PM Homework: Chapter 12 Homework Save Score: 0 of 1 pt 5 of 7 (3 complete) HW Score: 42.86%, 3 of 7 pts E12-31A (similar to) Question Help Sesnie 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 lo view the projected nel cash inlows.) (Click the icon to view the present value table) (Chok the icon to view the future value table) Read the regulaments (Chok the icon to view the present value annuity table) (Click the icon to view the future value annuity table) - X 0 Data Table Requirement 1. Compute this projects NPV using Sesnie Industries' 14% hurdle rate Should Sesnie Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole de asent values.) Net present value Year 1. $262.000 Year 2 $250,000 Year 3 $222,000 Year 4. S211,000 Year 5 $200.000 Year 6 $170,000 Print Done Enter any number in the edit fields and then click Check Answer ? 3 parts 3 Clear All Check Answer remaining 9:30 PM Type here to search o (? 74F Watch 6/16/2021 prod i Reference - X as ck the Present Value of Annuity of $1 Ck th s'14 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 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 Period 2 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.8292.775 2.723 2.6732.577 2.4872.4022.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.7173.6303.546 3.465 3.312 3.1703.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329|4.2123.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.0764.917 4.623 4.355| 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.0025.786 5.5825.206 4.8684.564 4.288 4.0393.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 98.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 9.471 8.9838.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 our 10 Period 10.3689.787 9.2538.760 8.3067.887|7.139 6.495 5.938 5.453 5.029 4.656 4.327 11 Period 11.255 10.575 9.954 9.3858.8638.384 7.536 6.814 6.194 5.660 5.1974.793 4.439 12 Period 12.134 11.348 10.635 9.986 9.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 Period 13.004 12.106 11.296 10.563 9.899 9.2958.244 7.3676.628 6.002 5.468 5.008 4.611 14 Period 13.865 12.849 11.938 11. 11810.380 9.712 8.559 7.606 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 7.469 6.623 5.929 5.353 4.870 20 Print Done -X Fits i Reference I (CH CI Future Value of $1 (CI strie nd 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 1.100 1.180 1.200 Period 2 1.020 1.040 1.061 1.0821.103 1.124 | 1.166 | 1.210 1.254 1.300 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.0821.126 1.170 | 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 | 1.340 1.419 1.587 1.772 1.9742.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.1721.267 1.369 | 1.4771.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.4231.551 1.6891.999 2.3582.7733.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 | 1.539 1.710 1.898 2.3322.8533.479 4.226 5.117 6.176 7.430 Period 12| 1.127 | 1.268 1.426 1.601 | 1.796 2.0122.518 3.138 3.896 4.818 5.9367.288 8.916 Period 131.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 4.6616.727 9.646 13.743 19.461 27.393 38.338 Period 25 1.282 1.641 2.094 2.666 3.386 4.2926.848 10.835 17.000 26.462 40.874 62.669 95.396 Period 30 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449|29.960 50.950 85.850 143.371 237.376 Period 40 1.489 2.208 3.262 4.801 7.040 10.28621.725 45.259 93.051 188.884378.721750.3781,469.772 swe Print Done Reference Future Value of Annuity of $1 8% 10% 20% HE 12% 1.000 14% 1.000 16% 1.000 18% 1.000 1.000 1.000 1.000 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Periods 1% 2% 3% 4% 5% 6% Period 1.000 1.000 1.000 1.000 1.000 1.000 1 Period 2.010 2.020 2.030 2.040 2.050 2.060 2 Period 3.0303.060 3.091 3.122 3.153 3.184 3 Period 4.060 4.122 4.1844.246 4.310 4.375 14 Period 5.101 5.204 5.309 5.416 5.526 5.637 15 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.867 6.105 6.353 6.610 6.877 7.154 7.442 8.977 9.442 9.930 11.414 12.142 12.916 14.240 15.327 16.499 Period 6.152 6.308 6.468 6.633 6.802 6.9757.336 7.716 8.115 8.536 16 Period 7.214 7.4347.6627.898 8.142 8.394 8.923 9.487 10.089 10.730 7 Period 8.286 8.583 8.8929.214 9.549 9.897 10.637 11.436 12.300 13.233 8 Period 9.369 9.755 10.159 10.583 11.02711.49112.488 13.579 14.776 16.085 9 Period 10.462 10.950 11.464 12.006 12.578 13.181|14.48715.937 17.549 19.337 10 17.519 19.086 20.799 21.321 23.521 25.959 25.733 28.755 32.150 Period 11.567 12. 169 12.80813.486 14.207 14.972 16.645 18.531 20.655 23.045 11 Period 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Print Done i X Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.9520.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.8570.826 0.797 0.769 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.8230.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 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 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.4520.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 10 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 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.1370.112 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 11 Period 12 Period 13 Period 14 Period 15 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 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 bo Print Done