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:

Year 1	$60,000
Year 2	$70,000
Year 3	$140,000
Year 4	$90,000
Year 5	$74,000
Year 6	$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	1.647	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
6	4.355	4.111	3.889	3.685
7	4.868	4.564	4.288	4.039

		$12,520
		$42,940
		$(8000)
		$18,600