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Sweeney Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $910,000. Projected
Sweeney Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $910,000. Projected net cash inflows are as follows: EEE (Click the icon to view the projected net cash inflows.) (Click the icon to view the present value table.) annuity table.) (Click the icon to view the future value table.) annuity table) Read the requirements. (Click the icon to view the present value (Click the icon to view the future value Requirement 1. Compute this project's NPV using Sweeney Industries' 16% hurdle rate. Should Sweeney Industries invest in the equipment? Why or why not? Begin by computing the project's NPV (net present value). (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Net present value. S Data table - X (Click the icon to w Year 1. $262,000 Year 2. $254,000 dastries' 16% hurdl Year 3.... $227,000 Year 4. $215,000 und your answer to t values.) Year 5. $203,000 Year 6. $178,000 Print Done haps//mylab pearson.com/Student/PayerHomewor homeworldd-631199915&questionld-68lushed-falecid-70685onback Doesigrwp Present Value of $1 on Periods me 1% 2% 3% 4% 5% Period 11 0.990 0.980 0.971 0.962 0.952 Period 21 0.980 0.961 0.943 0.925 0.907 0.890 0.857 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 Period 5 0.951 0.906 0.863 0.822 0.784 0.683 0.636 0.592 0.747 0.681 0.621 6% 8% 10% 12% 14% 16% 18% 20% 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.826 0.797 0.769 0.743 0.718 0.694 0.751 0.712 0.675 0.641 0.609 0.579 0.552 0.516 0.482 0.567 0.519 0.476 0.437 0.402 Period 6. 0.942 0.888 0.837 0.790 Period 7 0.933 0.871 0.813 0.760 Period 8 0.923 0.853 0.789 0.731 Co 0.746 0.705 0.630 0.564 0.665 0.583 0.513 0.627 0.540 0.467 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.507 0.456 0.410 0.370 0.335 0.711 0.452 0.400 0.354 0.314 0.279 0.677 0.404 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 hy or why not? 0.270 0.227 0.191 0.162 ing hegative net pre Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 e Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.625 0.557 0.497 0.397 0.319 0.257 0.601 0.530 0.469 0.368 0.290 0.229 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.208 0.168 0.137 0.112 0.182 0.145 0.116 0.093 Period 20 0.820 0.673 0.554 Period 25 0.780 0.610 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0.307 0.208 0,142 0.097 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.046 0.022 0.011 0.005 0.003 0.001 0.001 Future Value of $1 Periods Period 1 1% 2% 3% 4% 5% 1.010 1.020 1.030 1.040 1.050 Period 2 1.020 1.040 1.061 1.082 Period 3 Period 4 1.041 1.030 1.061 1.093 1.125 1.158 1.191 6% 8% 10% 1.060 1.080 1.100 1.103 1.124 1.166 1.210 1.260 1.331 1.405 12% 14% 16% 18% 1.120 1.140 1.160 1.180 1.254 20% 1.200 1.300 1.346 1.392 1.440 1.482 1.561 1.643 1.728 1.082 1.126 1.170 1.216 1.262 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.360 1.469 1.611 1.464 1.524 1.689 1,811 1.939 2.074 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1,974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1,949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 2.358 1.999 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.594 2.159 3.106 3.707 4.411 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 Period 12 1.127 1.268 1.426 1.796 1.601 2.012 2.518 3.138 3.896 4.818 5.936 7288 8.916 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 Period 15 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2.653 2.191 3.207 Period 25 1.282 1.641 2.094 Period 30 1.348 1.811 2.427 Period 40 1.489 2.208 3.262 4.801 4.661 13.743 19.461 27.393 6.727 9.646 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 3.243 7.040 10.286 21.725 45 259 93.051 188.884 378.721 750.378 1.469.772 38.338 95.396 753 PM Present Value of Annuity of $1 Periods Period 1 Period 21 1.970 1% 2% 3% 4% 5% 6% 8% 10% 0.990 0.980 0.971 0.962 1.942 1.913 1.886 2.884 2.829 3,902 4.853 2.775 3.808 3,717 3.630 4.713 4.580 4.452 Period 13 12 134 Period 14 13.004 Period 15 13.865 Period 3 2.941 Period 4 Period 5 Period 6 5.795 5.601 5.417 5.242 Period 7 6.728 6.472 6.230 6.002 Period 8 7.652 7.325 7.020 6.733 Period 9 8.566 8.162 7.786 7435 Period 10 9.471 8.983 8.530 8.111 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7536 6.814 6.194 5.660 5.197 11 348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 12% 14% 16% 18% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.723 2.673 2.577 2.487 2.402 2.322 3.546 3.465 3.312 3.170 3.037 2.914 4.329 4.212 3.993 3.791 3.605 3.433 20% 2.246 2.174 2.106 2.798 2690 2.589 3.274 3.127 2.991 5.076 4.917 4.623 4.355 4.111 3.889 5.786 5.582 5.206 4.868 4.564 4.288 4.039 3.812 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 7.108 6.802 6.247 5.759 5.328 4.946 7.722 7.360 6.710 6.145 5.650 5.216 3.685 3.498 3.326 3.605 4.607 4.303 4.031 4.833 4.494 4.192 5.029 4.656 4.327 4.793 4.439- 4.910 4.533 6.002 5.468 5008 4.611 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 Period 25 22.023 19.523 17 413 15.622 Period 30 25.808 22 396 19 600 17 292 Period 40 32.835 27 355 23.115 19.793 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 14.094 12.783 10.675 9.077 7.843 6.873 15.372 13.765 11.258 9.427 8.055 7.003 17.159 15.046 11.925 9.779 8.244 7.105 6.097 5.467 4.948 6.177 5.517 4.979 6.233 5.548 4.997 2:54PM Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% Period 1 Period 2 1.000 1.000 1.000 1.000 2.010 2.020 Period 3 3.030 3.060 Period 4 Period 5 4.060 5.101 2.030 2.040 3.091 3.122 4.122 4.184 4.246 5.204 5.309 5.416 8% 10% 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 2.120 3.153 3.184 3.246 3.310 3.374 4.310 4.375 4.506 4.641 4.779 5.526 5.637 5.867 6.105 6.353 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 2.140 2.160 2.180 2.200 3.440 3.506 3.572 3.640 4.921 6.610 5.066 5.215 5.368 6.877 7.154 7.442 Period 6 6.152 Period 7 7.214 8.286 Period 15 Period 20 Period 25 Period 30 Period 40 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9442 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 Period 9 19.086 20.799 19.337 21.321 23.521 25.959 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 Period 11. 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 22.019 24 297 26 870 29.778 33.066 36.786 45.762 57.275 72.052 249.214 342.603 471.981 28 243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 530.312 790.948 1,181.882 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 48.886 60.402 75.401 95.026 120.800 154 762 259.057 442.593 767.091 1,342.025 2,360.757 4,163 213 7,343.858 9.930 23.045 25.733 28.755 32.150 27.271 32.089 37.581 30.850 34.931 39.581 36.786 42.219 43.672 50.818 59.196 51.660 60.965 72.035 48.497 91.025 115.380 146.628 186.688 254 PM 152022
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