Sesnie Industries is deciding whether to automate one phase of its production process. The marulacturing equipment has a sx-year ilte and wil cost 5925 , coo. Projected net cash intlows are as follows: (Click the icen to view the projected net cash inflows.) (Click the icon to view the present value table.) (Click the ioon to view the present value annuity table.) (Click the icon to viow the future value table.) (Cick the icon to view the future value annulty table.) Read the 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 $102,000. The refurbished equipment could be used one more year, providing $74,000 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.) Reference Reference Sesnie Industries is deciding whether to automate one phase of its production process. The marulacturing equipment has a sx-year ilte and wil cost 5925 , coo. Projected net cash intlows are as follows: (Click the icen to view the projected net cash inflows.) (Click the icon to view the present value table.) (Click the ioon to view the present value annuity table.) (Click the icon to viow the future value table.) (Cick the icon to view the future value annulty table.) Read the 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 $102,000. The refurbished equipment could be used one more year, providing $74,000 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.) Reference Reference