Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a sbx-year life and will cost $450,000. Projected net cash inflows from the equipment are as follows: 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? Selected Answer: $12,520 Answers: $18,600