Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $370,000. Projected net cash inflows from the equipment are as follows: Year 1 $140,000 Year 2 $100,000 Year 3 $80,000 Year 4 $180,000 Year 5 $76,000 Year 6 $93,000 Sunny Days Corporation's hurdle rate is 12%. Assume the residual value is zero. What is the net present value of the equipment? Present Value of $1 Periods 1 2 3 10% 0.909 0.826 0.751 0.683 0.621 0.564 12% 0.893 0.797 0.712 0.636 0.567 0.507 14% 0.877 0.769 0.675 0.592 0.519 0.456 16% 0.862 0.743 0.641 0.552 0.476 0.410 4 5 6 Present Value of Annuity of $1 Periods 10% 1 0.909 2 1.736 3 2.487 4 3.170 5 3.791 6 4.355 0 $96.403 12% 0.893 1.690 2.402 3.037 3.605 4.111 14% 0.877 1.647 2.322 2.914 3.433 3.889 16% 0.862 1.605 2.246 2.798 3.274 3.685 O $96,403 O $107,971 O $11,568