St. Germaine 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.) 2 (Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Read the requirements Requirement 1. Compute this project's NPV using St. Germaine Industries' 16% hurdle rate. Should St. Germaine Industries invest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). X Intheses or a minus sign for negative net present values.) Data Table Net present value Year 1 $263,000 $254,000 Year 2 Year 3 $227,000 Year 4 $213,000 Year 5 $203,000 Year 6 $177,000 Enter any number in the edit fields and then click Check w Present Value of $1 4% 0.962 0.925 0.889 0.855 0.822 5% 6% 0.952 0.943 0.907 0.890 0.864 0.840 0.823 0.792 0.784 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 GI vel Periods 1% 2% 3% Period 1 0.990 0.980 0.971 Period 2 0.980 0.961 0.943 Period 3 0.971 0.942 0.915 Period 4 0.961 0.924 0.888 Period 5 0.951 0.906 0.863 Period 6 0.942 0.888 0.837 Period 7 0.933 0.871 0.813 Period 8 0.923 0.853 0.789 Period 9 0.914 0.837 0.766 Period 10 0.905 0.820 0.744 Period 110.896 0.804 0.722 Period 12 0.887 0.788 0.701 Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 Period 20 0.820 0.673 0.554 Period 25 0.780 0.610 0.478 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 0.650 0.625 0.601 0.577 0.555 0.585 0.527 0.557 0.497 0.530 0.469 0.505 0.442 0.481 0.417 0.429 0.397 0.368 0.340 0.315 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0.205 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 0.456 0.375 0.377 0.295 0.312 0.233 0.215 0.146 0.149 0.092 0.104 0.059 0.073 0.038 0.051 0.024 0.037 0.016 0.026 0.010 table.) ble.) Future Value of $1 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 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 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 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 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 ising esent Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 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 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 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 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 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 2.518 2.720 2.937 3.172 2.853 3.138 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 7.988 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 1.220 1.282 1.486 1.641 1.806 2.094 2.191 2.666 2.653 3.386 3.207 4.292 4.661 6.848 6.727 9.646 13.743 19.461 | 27.393 10.835 17.000 26.462 40.874 62.669 38.338 95.396 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 St. G walue Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 Period 7 6.728 6.4726.230 6.002 5.786 5.582 5.206 4.868 4.564 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.566 8.162 7.786 7.435 7.108 6.8026.247 5.759 5.328 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 1312. 134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 Period 15 13.865 12.849 11.938 11.118 10.380 9.7128.559 7.606 6.811 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4192 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 6.623 6.873 5.929 6.097 5.353 5.467 4.870 4.948 b Future Value of Annuity of $1 e 8% Periods Period 1 Period 2 Period 3 Period 4 Period 5 5% 1.000 2.050 3.153 4.310 5.526 1% 2% 3% 4% 1.000 1.000 1.000 1.000 2010 2.020 2.030 2.040 3.030 3.060 3.091 3.122 4.060 4. 122 4.184 4.246 5.101 5.204 5.309 5.416 6.152 6.308 6.468 6.633 7.214 7.434 7.662 7.898 8.286 8.583 8.892 9.214 9.369 9.755 10.159 10.583 10.462 | 10.950 11.464 12.006 6% 1.000 2.060 3.184 4.375 5.637 10% 1.000 2.100 3.310 4.641 6.105 1.000 2.080 3.246 4.506 5.867 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 ir 20% 1.000 2.200 3.640 5.368 7.442 e 6.802 8.142 9.549 11.027 12.578 6.975 7.336 7.716 8.115 8.394 8.923 9.487 10.089 9.897 10.637 11.436 12.300 11.491 12.488 13.579 14.776 13.181 14.48715.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12.916 16.499 20.799 25.959 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 | 20.655 12.683 13.412 14.192 15.026 15.917 | 16.870 18.977 | 21.384 24.133 13.809 14.680 | 15.618 | 16.627 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 | 19.599 | 21.015 24.215 | 27.975 32.393 16.097 | 17.293 18.599 | 20.024 | 21.579 23.276 27.152 31.772 37.280 23.045 27.271 32.089 37.581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34.931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 Period 20 Period 25 22.019 | 24.297 26.870 29.778 33.066 36.786 45.762 57.275 | 72.052 91.025 28.243 32.030 36.459 41.646 | 47.727 54.865 73.106 98.347 133.334 181.871 115.380 249.214 146.628 342.603 186.688 471.981