Sunny Days Corporation is deciding whether to automate one phase of its production process. The equipment has a six-year life and will cost $300,000. Projected net cash inflows from the equipment are as follows: 1 Year 1 Year 2 Year 3 Year 4 Year 5 ( Year 6 S130,000 $90,000 $140.000 S130.000 $94.000 $80,000 Sunny Days Corporation's hurdle rate is 12%. Assume the residual value is zero. What is the net present value of the equipment? 12% 0.893 0.797 0.712 0.636 0.567 0.507 14% 1402 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 Present Value of $1 Periods 10% 1 0 .909 2 0.826 0.751 0.683 0.621 0.564 sent Value of Annuity of $1 10% 0.909 1.736 2.487 3.170 3.791 6 4.355 $19.685 $164,038 S183.723 S164,038 DAWN 12% 0.893 1.690 2.402 3.037 3.805 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