Sweeney Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six year life and will cont 5915,000. Projected net cash intowns are as follows (Click the icon to view the projected net cashindows) (Click the icon to view the present valse table) (Click the icon to view the present value annully table) (Click the icon to view the future value table) (Click the icon to view the future value annully table) Read the requirements Requirement 1. Compute this project's NPV using Sweeney Industries 16% hurdo rate Should Sweeney Industrien invest in the equipment? Why or why not? Begin by computing the project's NPV (net present valse) (Round your answer to the nearest whole dollar Use Requirements Net present values 1. Compute this project's NPV using Sweeney Industries' 16% hurdle rate Should the company invest in the equipment? Why or why not? 2. Sweeney Industries could refurbish the equipment at the end of six years for $100.000 The refurbished equipment could be used one more you providing S77.000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a 555 000 residual value at the end of Year 7 Should Sweeney Industries Invest in the equipment and refurbish it after six years? Why or ty not? (Hint in addition to your aweto Requirement discount the additional cash outflow and flows back to the presenta Enter any number in the helds and then click CheckAnswer 1042 12 X i Reference Present Value of $1 Periods 1 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 20% 0.833 0.694 0.579 0.482 0.402 val 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.665 0.627 0.592 0.558 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.456 0.400 0.351 0.308 0.270 0.410 0.354 0.305 0.263 0.227 0.370 0.314 0.266 0.225 0.191 0.335 0.279 0.233 0.194 0.162 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0505 0.481 0.377 0.295 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.350 0.319 0.290 0.263 0.239 0.287 0.257 0.229 0205 0.183 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 20 25 0.820 0.780 0.673 0.610 0.554 0.478 0.456 0.375 0.312 0.233 0.149 0.092 0.104 0.059 0.073 0.038 0.051 0.024 0.037 0.016 0.026 0.010 ck d Print Done Reference Future Value of $1 Periods 6% 1.050 8% 1080 1 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1040 1.061 1.082 1.104 2 3 4 5 1.124 4% 1.040 1.082 1.125 1.170 1217 1.165 3% 1.030 1.061 1.093 1.125 1.150 1.194 1 230 1.257 5% 1.050 1.103 1.158 1.216 1278 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 16% 1.140 1.300 1482 1.689 1925 16% 1.160 1345 1561 1 811 2100 18% 1.180 1 392 1643 1.939 2288 20% 1.200 1440 1.728 2074 2488 1.191 1.262 1.338 1 260 1.350 1459 6 7 8 9 10 1.125 1.149 1.172 1.195 1.219 1.340 1407 1.477 1551 1.629 1.419 1.504 1.594 1689 1.791 2 195 2502 2.853 3.252 3.707 2436 2826 3.278 3.803 2700 3.185 3.759 2985 3.583 4300 6.160 6.192 1 305 1.344 1062 1,072 1.083 1094 1.105 1.116 1127 1130 1 149 115 1.587 1714 1.851 1.999 2.159 2332 2518 2720 2.937 3.172 1.772 1949 2144 2358 2594 2853 3.138 3.452 3.797 4.177 11 12 13 14 15 1.265 1316 1.369 1423 1.480 1539 1501 1655 1 732 1801 2.191 2666 1243 1268 1294 1.319 1345 1384 1426 1469 1513 1558 1.805 2094 1.710 1.790 1886 1980 2079 2653 3336 1 898 2012 2133 226 2397 3207 4292 1974 2211 2476 2773 3.106 3.479 3.896 4363 4.837 5474 9.646 17 000 4226 4818 5492 6.261 7130 13.743 28462 5.117 5936 6 888 7.989 9.266 19.461 40874 5234 6.175 7.289 8599 10.147 11 974 7430 8.916 10699 12.839 1540 38 338 95 396 20 25 1220 1282 1480 1641 4661 6348 6.727 10835 27 393 62 659 Print Done OR Reference Periods 1 14% 0.877 1% 0.990 1.970 2.941 3.902 4.853 2 3 4 5 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 1.647 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.859 1.833 1.783 1.736 2.723 2.673 2.577 2.487 3.546 3.465 3.312 3.170 4.329 4.212 3.993 3.791 5.076 4.917 4.623 4.355 5.786 5.582 5.206 4.868 6.463 6.210 5.747 5.335 7.108 6.802 6.247 5.759 7.722 7.360 6.710 6.145 12% 0.893 1.690 2.402 3.037 3.605 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2690 3.127 20% 0.833 1.528 2106 2589 2.991 2.322 2914 3.433 6 7 8 5.795 6.728 7.652 8.566 9471 5.601 6.472 7.325 8.162 8.983 5.417 6.230 7.020 7.786 8.530 5.242 6.002 6.733 7.435 8.111 4.111 4.564 4.968 5.328 5.650 3.889 4 288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 9 10 11 12 13 14 15 10.368 9.787 9.253 8.760 11.255 10.575 9.954 9.385 12.134 11.348 10.635 9.986 13.004 12.106 11.296 10.563 13.865 12.849 11.938 11.118 8.306 8.863 9.394 9.899 10.380 7.887 8.384 8.853 9.295 9.712 7.139 7.536 7.904 8.244 8.559 6.495 6.814 7.103 7.367 7.606 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 5029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4.533 4.611 4.675 20 25 18.046 16.351 22.023 19.523 14.877 13.590 12.462 11.470 9.818 17.41315.622 14.094 12.783 10.675 8.514 9.077 7.469 7.843 6.623 6.873 5.929 6.097 5.353 5.467 4.870 4.948 Print Done TI Periods 2 3 4 5 29 1000 2020 3.060 4.122 5.204 6300 15 1 000 2010 3.030 4.060 5.101 6.152 7214 8.286 9.369 10462 3% 1000 2030 3.091 4.184 5309 1.000 2040 3.122 424 5.410 16% 1000 2160 3.500 5,056 6 877 1296 1.000 2120 3.374 4.779 6.363 8.115 10.089 12300 14.77 17 549 14% 1.000 2140 3.440 4.921 6.510 8.53 107 13.230 16.085 19.337 1.000 2130 3.572 5215 7.154 20% 1000 2200 3.540 5.368 7442 9.930 12916 16 499 20.799 25.959 6 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1000 2050 2060 2080 2100 3.153 3.184 3.246 3.310 4310 4 375 4.506 4.641 5.526 5,637 5 867 6.105 6.802 6.975 7.338 7.716 8.142 8.394 8.923 9.487 9549 9.897 10637 11436 11027 11491 12438 13579 12578 13.181 14487 15 937 14207 14.972 15345 18.531 15 917 16.370 18.977 21384 17 713 21.495 2452 19.500 21015 24215 27 975 2157 23278 27 152 31772 23.00 36.736 45762 57 275 54855 73100 7 8 9 10 8.977 11414 14240 17 519 21 321 12142 15327 19 086 23.521 28.755 8.583 9.750 10.950 1215 13.412 14500 1597 1156 6.468 7562 8.892 10 15 11.454 12 808 14.192 15.618 17.00 18.579 20.370 38459 6630 7.898 9.214 10.583 12.006 13486 15020 16.627 18292 20.024 29770 41545 20.555 24.133 28020 32.150 39 581 13.30 12 13 14 15 23 045 27 271 32080 37581 43.842 910 181 811 2573 3050 35 43672 51 660 115330 219 214 12219 50.81 60.96 146 628 37280 12052 133 334 12.03 165 688 22019 20 25 24 32030 print non LE (Click the antavia - X (Click to 1 Data Table hurdle rate hy or wt Year 1 $263,000 ver to the n negative Year 2.... $252,000 Year 3.. $225,000 Year 4. $211,000 Year 5 $201.000 Year 6 S176.000 Print Done