Samson Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-your lifo and will cost $910,000. Projected net. cash infows are as follows: (Click the icon to view the projected net pash infows.) (Cick the icon to view the presont value table.) (Click the ican to view the prosent value annuity lable.) (Cick the icon to view the future value table.) (Click the ican to view the future value annuity tablo.) Read the requirements. Requirement 1. Compute this project's NPV using Samson industries' 14\% hurdle rate. Should Samson 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 parenthesen or a minus sign for negative net present values.) Net prosont vacue Data table Reference Reference Reference Reference Requirements 1. Compute this project's NPV using Samson Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Samson 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 $52,000 residual value at the end of Year 7 . Should Samson 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.) Samson Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-your lifo and will cost $910,000. Projected net. cash infows are as follows: (Click the icon to view the projected net pash infows.) (Cick the icon to view the presont value table.) (Click the ican to view the prosent value annuity lable.) (Cick the icon to view the future value table.) (Click the ican to view the future value annuity tablo.) Read the requirements. Requirement 1. Compute this project's NPV using Samson industries' 14\% hurdle rate. Should Samson 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 parenthesen or a minus sign for negative net present values.) Net prosont vacue Data table Reference Reference Reference Reference Requirements 1. Compute this project's NPV using Samson Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Samson 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 $52,000 residual value at the end of Year 7 . Should Samson 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.)
