Swan Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six year ife and will cost $025,000 Projected net cash intlows are as follows: Click the icon to view the projected not cash inflows) (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Read the requirements Requirement 1. Compute this project's NPV using Swan's 16% hurdle rate Should Swan invest in the equipment? Use the following table to calculate the net present value of the project (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for a negative not present value) Net Cash PV Factor (i = Years Inflow 16%) Present Value Year 1 Present value of each year's inflow: (n = 1) Year 2 Present value of each year's inflow: (n - 2) Year 3 Present value of each year's inflow: (n = 3) Year 4 Present value of each year's inflow: (n = 4) Year 5 Present value of each year's inflow: (n = 5) Year 6 Present value of each year's inflow:(n-6) Total PV of cash intlows Year 0 Initial investment Net present value of the project Fnter any number in the edit fields and then continue to the next question Swan Industries invest in the equipment Requirement 2. Swan could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, providing $72,000 of net cash inflows in year 7 Additionally, the refurbished equipment would have a $51,000 residual value at the end of year 7 Should Swan invest in the equipment and refurbish it after six years? (Hint In addition to your answer to Requirement 1 discount the additional cash outflow and inflows back to the present value) Calculatotho NPV of the refurbishment (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for cash outflows and for a negative not present value) Cash PV Factor ( (outflow)inflow 16%) Present Value Refurbishment at the end of Year 6 in-6) Cash inflows in Year 7 in-7) Residual value (n - 7) Net present value of the refurbishment The refurbishment provides a VNPV. The refurbishment NPV is to overcome the original NPV of the equipment Therefore, the refurbishment Valter Swan Industries' original decision regarding the equipment investment Enter any number in the edit fields and then continue to the next question. 1 wan Industries is deciding whether to automata Click the icon to view the projected not cas Reference Data Table Year 1 s Year 2 Year 3 Year 4 Year 5 Year 6 265 000 252.000 227,000 211 000 204,000 174,000 Present Value of 51 Periods 15 2% 35 45 5% 6% 7% 8% 9% 12% 15% 15% 105 20% Period 1 0.9900 98009710.062 0.952 0.943 09950 926 0917 0.000 0.890 0.877 0.870 02 08470833 Period 2 0.000 0.00 0.943 0.925 0.907 0900 873 0857 0342 0.8200 797 0.769 075607430 718 0094 Period 3 0.971 00420915088908640 84008160.7940.772 07510712 0.675 0658 0.541 06090 579 Period 4 090109240888085508230.79207030735 0.70806830636 0 502 0.572 0.552 0516 0.402 Period 5 0,0510 Soo 0.863 0.822 0784 074707130601 0.6500621 0.5670.519 0497 0476 0437 0 402 Period 6 0542 0888089707900745 0.705 0.556 0630 0.500 0.54 0.507 0.56 0.432 0.410 0.370 0335 Period 7 0.933 0.8710813 0.7000.711 665 0.623 058305470.51304520.400 0.376 03540314 0270 Period 8 0.923 0853 0.780 0.7310 677 0.627 0.582 0.5400 502 0.467 0:4040.351 0327 03050266 0233 Period 9 0914 08370 7000 7000,645 0.592 0544 0.500 0.400 0.424 0.3810 3000 284 0.263 0225 0.194 Period 10 0.9050820074406760614 0.5580508 0463 0.422 036 03220 2700 2470 227 0 191 152 Period 11029608040.72200500585 0.52704750429 0388 03500 287 0237 0.215 0.15 0.182 0135 Period 120.87 0.78 0.701 0625 0.557 0.497 0.444 0.307 0358 0 319. 0.257 0208 0.1870.1680 1370 112 Period 1308791030681 0.601 0530 0409 04150368 032602900220 0.192 0.163 0.145 0.110 0.003 Period 14 0.370 0.750 0.661 0577 0 505 0.442 03880340 0299 02830205 0.160 141 0.125 0.000 0.078 Period 15 0861 0.743 054205550481 0417 0.382 0.315 02750 230 0.18 0.140 0.128 0 100 2064 2065 Period 16 0.853 07280023 0.53404580.3940330 0.292 0252 02100 1630.1230 107 0.003 0.071 0.051 Period 170844 0.714 0.005 051304960371 03170270 0231 01980146 0.10800 0000 0000 0015 Period 18 0836 0.7000 587 0,4940416 0 3500 200 0.250 0212 0.180.130 0.00 0.00 0.009 0051 0.033 Period 19 0.628 0686 0.570 0475 0:398 0331 0.277 0232 0 1940.184 0.116 0083 0.070 0000 0.013 0031 Period 200.820 0.673 05540456 0.377 0312 0 258 0.215 0.17 0.149 0.1040073 0.01 0.051 0.007 0.020 Period 21 0.811 0.000 0.538 439 0.359 0 2940242 0.1990 1640 135 009 0054 0053 0.044 0.001 0.022 Period 22 0.003 0.617 052204220342 0278 0228 0.184 0.150 0.123 0.083 0.066 0046 0.038 0.005 0011 Print Done as inflows in Year 7 in - 7 esidual value in 7) et present value of the refurbishment NPV. TI he toubishment provides a von - Reference Present Value of Ordinary Annuity of $1 1% Periods 2% 3% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.9900 9800.971 0.962 0.952 0943 09350 926 0.917 0.9090.893 0.8770 8700 8620 847 0.833 Period 2 1970 1942 1.913 1886 1859 1833 1.808 | 1783 1 759 1738 1 690 1.647 1 626 1.805 1.5681528 Period 3 2941 28942829 2775 27232 673 26242577 25312487 2.402 2322 2283 2246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.4653387 3312 3.240 3.170 3.037 29142855 2.798 2.690 2 589 Periods 4853 4.713 45804452 4.32942124 100 3.993 3 890 3.791 3.605 3.433 3 352 3.274 3.127 2.991 Period 6 5.795 5.8015417 5242 5076 4,9174767 4.623 4 486 4 355 4.111 3 889 3.784 3.885 3.498 3.326 Period 7 6.728 6 472 6230 6.0025 786 5582 5,389 5206 5,0334 868 4564 4288 4.1604.039 3812 3.605 Period & 7.6527325 7020 6.733 6.463 6.210 5.971 5.747 5535 5335 4.968 46394,487 4.344 4078 3.837 Period 9 8,5668.1627.786 74357 108 6.802 6.515 6.247 5.995 5.7595328 4.9464.7724.607 4.303 4.031 Period 10 94718,9838.530 8.1117 722 736070246.710 6.418 6.145 5.6505.216 5,019 4.833 4494 4.192 Period 11 10.3689.7879 253 8.7608 308 7.8877499 7 139 6.80564955,938 5.453 5 234 5.029 46564327 Period 12 11 255 10 575 9954 93858 863 8.384 7943 7536 7 1616 814 6.1945.660 5.421 5 197 4.793 4.439 Period 13 12.134 11 348 10.6359.9869.394 8.853 8 3587904 74877 103 6.424 5.8425,583 5.3424.910 4.533 Period 14 13.004 12 106 11 206 10.563 9.899 9.295 8.745 8 244 7.7867.367 6.6286.0025.724 5.468 5.008 4611 Period 16 13 865 12 849 11.938 11.118 (10 3809712 9.108 8559 8.061 7.606 6 811 6.142 58475575 5.092 4.675 Period 16 14718 13.578 12.561 11652 10.838 10.106 9.447 8.851 8.313 7 824 6.9746 285 59545,669 5.1624.730 Period 17 15.582 14.292 13 166 12 166 11.274 10.477 9763 9.122 8.5448 022 7.1206.373 6.047 5 749 | 5 222 4.775 Period 18 16 398 1499213754 12.659 11.690 10 828 10.059 9.372 8.756 8.2017.250 6.467 6.128 5.818 5.2734.812 Period 19 17 226 15.678 14324 13 134 12.085 11.158 10.336 9.604 8.950 8.365 7366 6.550 6.198 5.877 5.316 4.844 Period 20 18.046 16 351 14 877 13.590 12.462 11.470 10.5949.818 9.129 8.51474696.623 6.259 5.929 5353 4.870 Period 21 18.857 1701115 415 14.029 12 821 11.784 10.836 10.017 9.292 8.6497.562 6.687 6.312 5 973 5.384 4 891 Period 22 19.660 17 658 15.937 14:451 13 163 12.042 11.061 10.201 9.442 8.772 7.645 6.743 6.359 6.011 5.410 4 909