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Samson Industries is deciding whether to automate ono phase of its production process. The manufacturing equipment has a syeyear life and will cost 5925,000 .

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Samson Industries is deciding whether to automate ono phase of its production process. The manufacturing equipment has a syeyear life and will cost 5925,000 . Projected net cash. inflows afe as follows (Click the icon to View the projected net cash inflows.) (Cick the icon to view the peesent value table.) (Click the icon to vew the fiture value table). (Click the icon to viow the present value annulty table.) Fread the refuirements: (Click the icon to view the future value annuily table) Requirement 1. Compule this project N NPV uting Samson industries' 16% hurdle nate, Should Samson Industries invest in the equipment? Why or why nor? Begin by computing the projecre NFV (net present value) (Round your answer to the nearost whoie dollar Use porentheses or a minus sign lor negatien net present values.) Nes present value Data table Samson Industries is deciding whether to automate ono phase of its production process. The manufacturing equipment has a syeyear life and will cost 5925,000 . Projected net cash. inflows afe as follows (Click the icon to View the projected net cash inflows.) (Cick the icon to view the peesent value table.) (Click the icon to vew the fiture value table). (Click the icon to viow the present value annulty table.) Fread the refuirements: (Click the icon to view the future value annuily table) Requirement 1. Compule this project N NPV uting Samson industries' 16% hurdle nate, Should Samson Industries invest in the equipment? Why or why nor? Begin by computing the projecre NFV (net present value) (Round your answer to the nearost whoie dollar Use porentheses or a minus sign lor negatien net present values.) Nes present value Data table Reference Samson Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a sixinflows 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 requirgments. Requirements 1. Compute this project's NPV using Samson Industries' 16% 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 $100,000. The refurbished equipment could be used one more year, providing $76,000 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 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.)

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