Venu Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six$-$year life and will cost $$930,000.$ Projected net cash inflows are as follows:

Requirement $1.$ Compute this project's NPV using Venu's $16\%$ hurdle rate. Should Venu 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$.$ L

Data table

the present value.$)$

Calculate the NPV of the refurbishment. $($Enter any factor amounts to three decimal places,

X$.$XXX$.$ Use parentheses or a minus sign for cash outflows and for a negative net present value.$)$

The refurbishment provides a

the equipment investment.