tomate one phase of its production process. The manufacturing equipment has a six-ye 1 net cash inflows.) Value of $1 table.) (Click the icon to view the Present Value of Annuity of $1 table.) 0 Requirements 1. Compute this project's NPV using Nord's 14% hurdle rate. Should Nord invest in the equipment? 2. Nord could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $76,000 of net cash inflows in year 7. Additionally, the refurbished equipment would have a $54,000 residual value at the end of year 7. Should Nord 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.) Print Done che project fields and then click Check Answer Clear All CH ase of its production process. The manufacturing equipment has a S.) (Click the icon to view the Present Value of Annuity of $1 tab ord t? i Data Table - alue mal places, X. leto Year 1 $ Infl 263,000 Year 2 253,000 226,000 Year 3 Year 4 Year 5 215,000 20 000 174,000 Year 6 Print Done click Check Answer. Clear All core: 0 of 1 pt 16 of 19 (2 complete) HW Score: 10.53%, 2 of 19 pts E26-23 (similar to) Question Help Nord Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000 Projected net cash inflows are as follows: (Click the icon to view the projected net cash inflows.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of Annuity of $1 table.) Read the requirements Requirement 1. Compute this project's NPV using Nord's 14% hurdle rate. Should Nord 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, X.XXX. Use parentheses or a minus sign for a negative net present value.) PV Factor Net Cash Inflow Present Value Years (i = 14%) 1 2 Present value of each year's inflow. (n = 1) (n=2) (n 3) (n = 4) (n = 5) In 3 V1) 4 5 0/1) 6 0/1) (n = 6) Total PV of cash inflows 10/1) 0 Initial investment Net present value of the project Enter any number in the edit fields and then click Check Answer. 3 parts Clear All Check Answer remaining
