The correct answers are shown above but I am wanting to know the mathematical calculations to get the Net Present Value and how to also calculate the Additional NPV provided from refurbishment.

Please provide explanations for the answers, especially the mathematical operations.

Thank you very much.

2x E12-29A (similar to) Question Help Berkner Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $925,000. Projected net cash inflows are as follows: E: (Click the icon to view the projected net cash inflows.) 3 (Click the icon to view the present value table.) (Click the icon to view the present value annuity table.) 5 (Click the icon to view the future value table.) 2 (Click the icon to view the future value annuity table.) Read the requirements. Requirement 1. Compute this project's NPV using Berkner Industries' 16% hurdle rate. Should Berkner 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 $ (84,476) Berkner Industries should not invest in the equipment because its NPV is negative Requirement 2. Berkner Industries could refurbish the equipment at the end of six years for $100,000. The refurbished equipment could be used one more year, providing $74,000 of net cash inflows in Year 7. In addition, the refurbished equipment would have a $52,000 residual value at the end of Year 7. Should Berkner Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value.) Calculate the additional NPV provided from the refurbishment. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) Additional NPV provided from refurbishments 3,604 The refurbishment provides a positive NPV. The refurbishment NPV is not large enough to overcome the original NPV of the equipment. Therefore, the refurbishment should not alter Berkner Industries' original decision regarding the equipment investment i Data Table Year 1... Year 2........ Year 3..... Year 4 Year 5.......... Year 6... $260,000 $251,000 $225,000 $214,000 $203,000 $173,000 Print Done Periods 1 1.000 2010 3.030 4.060 5.101 | 496 1.000 2.040 3.122 4.246 5.16 9397 15.327 456789mmQBHB88mm 6.152 7.214 8.286 9363 10.462 11.567 12.883 6.809 12.947 16.037 22.019 28.2.3 2.725 48.885 26 30 | 1.000 1.000 2.020 2.030 3.060 3.091 4.122 4.18. 5.204 5.313 6.308 6.68 7.43. 7.662 8.583 8.292 9.755 10.159 10.950 11.464 12.168 12.808 .12 14.192 1.680 15.513 16.974 17.06 17.293 18.599 22.257 25.870 32.30 36.58 40.568 47.575 | 60 402 | 75.401 5.633 7.898 9.212 10.583 12.006 3.486 15.026 16.27 18.292 20.024 Future Value of Annuity of $1 5 69 88 | 10% 1.00 1.000 1.000 1.000 2.150 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.5.1 5.526 5.537 5.867 6.115 6.802 6.375 7.335 7.716 8.142 3.334 8.923 9487 9.549 10.537 11.436 11.027 11.491 12.488 3.579 12.578 13.181 11.87 15.937 14.207 14.372 16.545 18.531 15.317 16.870 8.977 21.384 7.713 18.882 21.495 22.523 19.599 21.015 22.215 27.975 21.579 2.276 27.152 31.772 2.056 36.786 45.762 57.275 47.727 5. 365 3.106 98.347 66.39 79.058 113.283 16.494 | 120.800 | 16..762 | 255.057 442.593 128 | 14 168 | | 188 20% 1.000 1.000 1.000 1.000 1.000 2.120 2.140 2.160 2.180 2.200 3.374 3.440 3.506 3.572 3540 4.779 4.321 5.066 5.215 5.368 6.353 6.610 6.877 7.154 7.442 8.115 8.536 8.977 3.42 9.930 10.089 10.730 11.414 2.142 12.916 12.300 3.233 1.240 16.499 12.776 16.085 17.519 19.085 20.799 7.5.9 19.337 21.321 3.521 25.959 20.55 2.045 25.733 28.755 32.150 2.133 27.271 30.850 2.31 39.581 28.029 32.089 36.786 42.219 48 497 32.393 37.581 43.672 50.818 8.196 37.280 43.242 51.560 60.965 72.035 72.52 21.025 | 115.380 146.628 | 186.68 138.334 | 181.871 | 249.214 342.503 471.981 241.333 | | 365.787 | 520.312 1730.948 | 1181.882 | 767.031 |1342.025 | 2.360.75 14.163.213 | 343.858 29.773 41.546 56.0285 25.026 Future Value of $1 Periods 12 4 5 3 1.030 1.061 1.033 1.126 1.153 1.252 2.211 19 1.010 1.020 1.030 1.0.1 1.151 1.062 1.072 1.083 1.034 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1282 1.343 1.488 23456789pm2CHE 1.020 1.040 1061 1.082 1.104 1.126 1.149 1.172 1.135 1.213 1.243 1.253 1.292 1.313 13.6 1.00 1.082 1.125 1.170 1.217 1.265 1.315 1.363 1.423 1.80 1.53 1.501 1.565 1.732 1.301 2.1931 2.666 3.243 4.801 1.194 1.230 1.267 1.305 1.3.2 1.38. 1.25 1.469 1.513 1.558 1.806 2.03. 2.227 | 3.262 5% 1.150 1.103 1.158 1.216 1.276 1.340 1.407 1477 1.551 1.625 1.710 1.796 1.886 1.980 2.079 2.663 3.326 4.322 7.040 2592 8 10- 1.060 1.080 1.100 1.12. 1.166 1.210 1.191 1.260 1.360 1.54 1.333 1.463 1.511 1.49 1.587 1.772 1.50. 1.714 1.349 1.584 1.851 2.12. 1.588 1.999 2.358 1.31 2.159 1.888 2.332 2.853 2012 2.518 3.138 2.133 2.720 352 2.251 2.937 2.397 3.172 4.177 3.207 4.661 4.232 6.848 10.85 5. 73 10.05 7.A.9 | 10.28 | 21.725 | 45.259 | 12 14 1.120 1.140 1.254 1.300 1.405 1.482 1.57A 1.588 1.762 1.325 1974 2.195 2.502 2476 2.853 2.773 3252 3.106 3.707 3479 4.226 3.896 4.818 4.363 5.492 4.87 6.261 5.474 7.138 2.546 13. 73 17.000 26.462 28.960 50.350 8.151 | 188.884 168 188 2016 1.160 1.180 1.200 1.346 1.392 1.40 1.561 1.543 1.728 1.81] 1933 2.07. 2.100 2.288 2488 2436 2.700 2.986 2.826 3.185 3.583 3.278 3.758 4.300 3.803 4.35 5.160 4411 5.234 6.192 5.117 5.176 7.430 5.236 7.288 8.316 6.886 8.599 10.699 7.988 10.147 12.839 9.256 11.974 15.407 18.461 27.393 38.338 40.874 62.668 95.35 85.250 143371 237.375 | 378.721 | 750.373 |1,469.72 3797 6.727 1.85 1.541 1.311 2.208 | Periods 0.971 1% 0.990 1.970 2.941 3.902 2.577 4.853 cocoon COO) on on NV 5.206 4.564 6.463 Present Value of Annuity of $1 29 5% 6% 8% 10% 12% 14% 16% 0.980 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 2.884 2.829 2.775 2.723 2673 2487 2402 2.322 | 2.246 3.808 3.717 3.630 | 3.546 3.465 3.312 3.170 3.037 2914 2.798 4.713 4.580 4.452 4.329 4.212 3.791 3.605 3.433 3.274 5.601 5.417 5.242 5.076 4.917 4.623 4.355 | 4.111 3.889 3.685 6.472 6.230 6.002 5.786 5.582 4.868 4.288 4.039 7.325 7.020 6.733 6.210 5.747 5.335 4.968 4.639 4.344 8.162 7.786 7.435 7.108 6.802 5.328 4.946 4.607 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 9.787 9.253 8.760 | 8.306 7.887 7.139 6.495 5.938 5.453 5.029 10.575 9.954 9.385 8.863 8.384 6.814 6.194 5.660 5.197 11.348 10.635 | 9.986 9.394 8.853 7.103 6.424 5.842 5.342 12.106 | 11.296 | 10.563 9.899 9.295 7.367 6.628 6.002 5.468 12.849 11.938 11.118 10.380 9.712 7.606 6.811 6.142 5.575 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 22.396 | 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 6.247 8.566 9.471 10.368 11.255 12.134 13.004 13.865 18.046 22.023 25.808 32.835 5.759 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5.548 20% 0.833 1.528 2.106 2.589 2991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 8.559 Present Value of $1 Periods) 1% | 2% | 3% | 4% | 5% | 6% | % | 10% | 12% | 14% | 16% | 1 % | 20% 0990 | 1980 | 1971 | 0.962 | 0952 | 0943 | 0926 | 0909 | 0.883 | 0877 | 0.862 | 0847 | 0333 0.980 | 0.961 | 0943 | 0925 | 0907 | 0890 | 0857 | 0826 | 0797 | 0769 | 0.743 | 0.713 | 0.694 0971 | 0.942 | 0915 | 1888 | 0864 | 0840 | 0.794 | 0.751| 0.712 | 0.575 | 0.541 | 0.609 | 0579 0.961 | 1924 | 0888 | 0.855 | 0823 | 0792 | 0735 | 0.683 | 0.536 | 0.592 | 0.552 | 1516 | 0482 0951 | 0906 | 0.363 0822 | 0.784 | 0747 | 0.681 | 0.621 0.567 | 0519 | 0476 | 0437 0402 0942 | | 0.888 | 0337 0.790 0.746 | 10.705 | 0630 | 0.564 0.507 0456 | 0410 0370 0335 0933 | 0871 | 0813 0760 0.71 | 0.665 | 0.583 | 0.513 0452 0400 0.354 0314 0279 0923 0853 | 0.789 0731 0.677 10627 | 0.540 | 0467 0404 0351 10305 | 0266 0233 0914 0837 | 0766 0.703 0.545 | 0.592 | 0.500 | 0424 0.361 0.308 | 0263 0225 0194 0905 0820 | 0.744 0.676 0614 | 0.558 | 0463 | 0386 0322 0.270 | 0227 10191 0.162 0896 | 0.804 | 0722 0.650 0585 | 1527 | 0429 || 10.350 | | 0287 | 0237 | 0195 | 1162 0 135 0887 0.788 0.701 0.625 0.557 0497 0397 | 0319 10257 0208 0.168 0.137 0.112 0.879 0.773 0.681 0.601 0.530 0469 0.368 | 0290 | 0.229 0.182 0.145 0.116 0.093 0.870 0.758 0.661 0577 0.505 0442 0.340 | | 0.263 | 0205 0160 0125 | 0.099 0.073 0861 0743 0.642 0.555 0481 0417 0.315 | 0239 0.188 | 0.140 | 0.108 | 0.084 0.065 0820 0573 0.554 0456 | | 0377 | 0312 | 0215 | 0.149 0104 | 0.073 | | 0051 | 0037 0.026 0.780 | 0610 0478 0375 | 0295 0.233 10.146 0.092 10.059 | 0.038 ) | 0.024 | 2016 | | 0.010 0.742 | 0.552 0412 | 0.308 | 0231 | 0.174 0.099 0.057 10.033 | 0.020 | 0.012 | 0.007 | | 0.004 0.672 | 0453 10307) | 0208 | 1142 | 0.097 | 0.046 | 0.022 0.011 | 0.005 | 0.003 | | 0.001 | 0.001 23 4 5 cresum