Venu Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $900, Projected net cash inflows are as follows: Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of S1 table.) Click the icon to view Present Value of Ordinary Annuity of 1 table) Read the requirements 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. Use parentheses or a mi a negative net present value.) Net Cash PV Factor Years Inflow = 16%) Present Value Year 1 Present value of each year's inflow: (n = 1) Year 2 Present value of each year's Inflow: (n=2) Year 3 Present value of each year's inflow: (n = 3) Year 4 Present value of each year's inflow: (n = 4) Year 5 Present value of each year's Inflow: (n = 5) Year 6 Present value of each year's inflow: (n = 6) Total PV of cash inflows Year O Initial investment Net present value of the project Venu Industries invest in the equipment Cash Requirement 2. Venu could refurbish the equipment at the end of six years for $106,000. 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 $50,000 residual value at the end of year 7. Should Venu 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 prosent value.) Calculate the NPV of the refurbishment (Enter any factor amounts to three decimal places, XxXx Use parentheses or a minus sign for cash outflows and for a negative not present value.) PV Factor ( (outflow)/Inflow 16%) Present Value Refurbishment at the end of Year 6 in = 6) Cash inflows in Year 7(n-) Residual value (n) Net present value of the refurbishment The refurbishment provides a NPV. The refurbishment NPV is to overcome the original NPV of the equipment. Therefore, the refurbishment alter Venu Industries' original decision regarding the equipment investment xx. Use parentheses or a minus sign for a negative net present value.) Data table Year 1 $ 260,000 Year 2 253,000 Year 3 226,000 Year 4 212,000 Year 5 205,000 Year 6 174,000 used Addit Print Done War sigil