Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $450,000. Projected net cash inflows from the equipment are as follows: $60,000 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $70,000 $140,000 $90,000 $74,000 $92,000 Sunny Days Corporation's hurdle rate is 12%. If Sunny Days Corporation decides to refurbish the equipment at a cost of $60,000 at the end of year 6, it could be used for one more year and would have a $10,000 residual value at the end of year 7. Assume the cash inflow in year 7 is $85,000. What is the NPV of just the refurbishment? Present Value of $1 Periods 10% 12% 14% 16% 1 0,909 0.893 0.877 0.862 2 0.826 0.797 0.769 0.743 3 0.751 0.712 0.675 0.641 4 0.683 0.636 0.592 0.552 5 0.621 0.567 0.519 0.476 6 0.564 0.507 0.456 0.410 7 0.513 0.452 0.400 0.354 Present Value of Annuity of $1 Periods 10% 12% 14% 16% 1 0.909 0.893 0.877 0.862 2 1.736 1.690 1647 1.605 3 2.487 2.402 2.322 2.246 4 3.170 3.037 2.914 2.798 5 3.791 3.605 3.433 3.274 B 4.355 4.111 3.889 3.685 7 4868 4.664 4.288 4.039 Kranni