Requirements 1. Compute this project's NPV using Sesnie Industries' 16% 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 $100,000. 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 $54,000 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.) Sestie Industries is deciding whether to automate one phase of its production process. The manufacturing quomont has a six your life and will cost $95.000 Proces met cash intows are as follow Click the icon to view the projected at casinos (Click the icon to view the presente table (Click the icon to view the present at annuty tab) (Click the icon to view the future valuable Click the icon to view the future value annuity tabin Read the car.com Requirement 1. Computo this projects NPV using Sesnie industries 10% hurdiorate Should Sesni industries invest in the equipment? Why or why not? Begin by computing the project's NPV (not present Value) (Round your answer to the nearest whole doar Use parentes or a minussion for negative not presentes Not presenta - X Data Table Year 1.... $262,000 S Year 2.... Year 3.. $250,000 $225,000 $213,000 Year 4... Year 5... $203,000 Year 6.. $175,000 - 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 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.8550.823 0.792 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 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 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 10 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 Period 11 0.8960.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 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 14 0.870 0.758 0.661 0.5770 505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 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 20 0.820 0.673 0.554 0.456 0.377 0.3120.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.2330.146 0.092 0.059 0.038 0.024 0.0160.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.0200.0120.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.1420.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1,082 1.125 1.170 1.217 1.265 1.316 1.369 1.423 1.480 5% 1.050 1 103 1.158 1.216 1 276 1.340 1.407 1.477 1.551 1629 6% 1.060 1.124 1.191 1 262 1338 8% 1.080 .166 1260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 2.195 2.502 2853 3.252 3.707 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2288 20% 1.200 1.440 1.728 2.074 2.488 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1 305 1.344 1.419 1.504 1.594 1 689 1.791 1.587 1.714 1 851 1 999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2476 2.773 3.106 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2986 3.583 4.300 5.160 6.192 2.853 3.138 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1 161 1243 1 268 1.294 1319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1,665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2012 2.133 2.261 2.397 2.332 2518 2.720 2.937 3.172 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7 138 5.117 5.936 6.886 7988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2653 3.386 4322 7.040 3.207 4.661 6.727 9.646 13.743 19.461 27 393 38.338 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95 396 5.743 10.063 17 449 29.960 50 950 85.850 143.371 237 376 10.286 21.725 45.25993.051 188.884 378.721 750.378 1.469.772 Present Value of Annuity of $1 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 4.853 4.713 4.580 4.452 4.3294212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4623 4.355 4.111 3.8893.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.9684.639 4.344 Period 9 8.566 8.1627.7867435 7.108 6.802 6.247 5.759 5.328 4.9464.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 Period 11 10 368 9.787 9.2538.760 8.30678877.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 1312.134 11.348 10 635 9.986 9.394 8.853 7.904 7 103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.0025.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.7128.559 7 606 6.811 6.142 5.575 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7 4696.623 5.929 Period 25 22.023 19.523 17 41315.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 Period 30 25 808 22.396 19.600 17 292 15 372 13.765 11 258 9.4278.055 7003 6.177 Period 40 32 835 27 355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 5.353 5.467 5.517 5.548 4.870 4.948 4.979 4.997 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Future Value of Annuity of $1 this 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2.030 2.040 2.050 2.060 2080 2.100 2.120 2.140 2.160 2.180 2200 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5,309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21 321 23.521 25.959 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32 150 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 13.809 14.68015618 16.627 17.713 18.882 21.495 24.523 28.029 32089 36 786 42.219 48.497 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393 37.581 43.672 50.818 59.196 16.09717 29318,599 20.024 21579 23.276 27.152 31772 37 280 43.842 51 660 60.965 72035 22.019 24.297 26.870 29.778 33 066 36.786 45.762 57.275 72.052 91025 115 380 146 628 186.688 28.243 32030 | 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 34.785 40.568 47.575 56.085 66.43979.058 113.283 164.494 241.333 356.787 530.312 790.948 1,181.882 48 886 60.402 75.401 95.026 120.800 154.762 259,057 442.593 767.091 1,342.025 2,360.757 4,163.2137.343.858 Period 11 Period 12 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40