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Venu 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

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Venu 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 flows are as follows: Click the icon to view the projected net cash intows) (Click the icon to view Present Value of $1 table> Click the icon to view Present Value of Ordinary Annulty of $1 table) Read the requirements Requirement 1. Compute this project's NPV using Venu's 14% hurdle rate. Should Venu invest in the equipment? Use the following table to calculate the represent value of the project. (Enter any factor amounts to three decimal places, Xxxx Use parentheses or a minus sign for a negative not presentar) PV Factor Net Cash Inflow Years Present Value Year 1 Present value of each year's inflow:(n-1) Year 2 Present value of each year's Inflow in 2) Year 3 Present value of each year's Intlow (3) Year 4. Present value of each year's inflow. In 4) Year 5 Present value of each year's Intlewin - 5) Year Present value of each year's inflow in 6) Total PV of cash intows Year Initial investment Net present value of the project Entor any number in the edit fields and then click Check Answer 3 Clear A parts remaining Venu Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-y (Click the icon to view the projected net cash inflows.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 ta Read the requirements Requirement 1. Compute this project's NPV using Venu's 14% 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, XX Net Cash Inflow Years PV Factor ( = 14%) 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 0 Initial investment Net present value of the project Enter any number in the edit fields and then click Check Answer. 3 parts remaining Clear A Score: 0 of 6 pts 6 of 9 (8 complete) 1 Reference EM9-24 (similar to) Venu Industries is deciding whether to automate one Cack the icon to viow the projected net cash info (Click the icon to view Present Value of $1 table) Present Value of 51 6% 7% 14% 15% 165 18% Read the reauirements Requirement 1. Compute this project's NPV using Vor Data Table Year 1 $ 261,000 Periods 1% 2% 3% 4% SX 8% 9% 10% 12% 20% Period 1 0.990 0.98009710502 0.9520.943 0.935 0.926 0.917 0.909 0.88 0.8770870 0.862 08470.833 Period 2 0.980 0961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.61 Perlod 3 0.971 0.942 0.915 0.880 0.864 0.840 0.816 0.74 0.772 0.751 0.712 0.675 0.658 0.64 0.609 0.579 Period 4 0.961 09240.888 0.855 0.823 0.792 0.763 0.736 0.7090.583 0.636 0.582 0.572 0.552 0.516 0.42 Periods 0.951 0.906 0863 0822 0.784 0.747 0.713 0681 0.650 06210.567 0519 0497 0.476 0437 0402 Period 6 0.9420888 0.837 0,790 0.746 0.705 0,666 0.630 0.596 0.564 0.507 0456 0.432 0.410 0.370 0.336 Period 7 0.933 0.871 0813 0.760 0711 0.665 0.623 0.583 0.547 0.513 0.452 0400 0376 0.354 03140279 Periods 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0540 0.502 04670,404 03810327 0.305 0268 0233 Period 9 0.914 08370.766 0.703 0.645 0.5920.544 0.500 0.460 0.424 0.361 0.308 0254 0.250 0.225 0.194 Period 10 0.905 0.820 0.744 0.678 0.64 0.558 0.508 0.483 0.422 0.386 0.322 0270 0247 0.227 0.191 0.162 Period 11 0896 0.804 0.722 0.650 0.585 0.527 0475 0.429 0.388 0.350 0.287 0.237 0215 0.19 0.162 0.135 Period 12 0.887 0788 0.701 0.625 0.557 04970444 0.397 0.358 0.319 0.257 0208 0.187 0.16 0.137 0.112 Period 13 0.879 0773 0681 0.601 0.530 0469 0415 0.368 0,328 0290 0.229 0.182 0.163 0.145 0.116 0.093 Perlod 14 0.870 0.750 0.661 0.577 0.506 0442 0.388 0340 0.299 0283 0.205 0.160 0,141 0.125 0.099 0.078 Period 15 0.861 0743 0.642 0.555 0.4810417 0.32 0.315 0.276 0239 0.183 0.140 0.123 0.108 0084 0.035 Period 18 0.853 072 0.025 0.54 0.45 0.3440.339 0292 0.252 0218 0.16 0.123 0.1070.00 0.071 0.054 Period 17 0544 0.714 0.605 05130430371 0.3170.2700 2310.1980.146 0.1080093 0.000 0.000 0.015 Period 18 0.836 0700 0.587 04940416 0.350 0.296 0.250 0.212 0.1800.150 0.00 0.00 0.00 0.051 0.030 Period 19 0828 0.686 0.570 0475 0.39 0.331 0277 0.232 0.19 0.164 0.116 0.003 0.00 0.00 0.04 0.031 Period 20 08:20 0.673 0.5540456 0377 0.312 0.250 0.215 0.17 0.1400.104 0.073 0.061 0.051 0037 0.025 Period 21 0811 0.60 0.538 0499 0.359 0.2940.242 0.19 0.1640.135 0.005 0.04 0.053 0.014 0.0310022 Period 22 0803 0.647 0.5220422 0.3420278 0.22 0.18 0.150 0.123 0.000 0.0560045 0.038 0.0200018 Period 23 0.795 0.64 0.5070406 03250.262 02110.170 0.13 0.112 0.014 0.0490040 0.033 0.022 0.015 Year 2 254,000 Year 3 225,000 Year 4 210,000 Year 5 200,000 Year 173,000 Print Done Enter any number in the edit fields and then click Print Done Reference EM9-24 (similar to) Venu industrien i deciding whether to automate one phase of its production betoon to view the projected out cash info) Click the loon to view Present Value of $1 table> C 1 H | Read the fourts 6% 84 14 Requirement 1. Compute this projects NPV using Venus 14. ure tato Sil Requirements 1. Compute this projects NPV using Venus 14% hurdle rate. Should Venu invest in the equipment? 2 Venu could refurbish the equipment at the end of sex years for $104.000. The refurbished equipment could be used one more year, providing $72,000 of not 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 after six years? (Hint: In addition to your answer to Requirement 1. discount the additional cash outlow and inflows back to the prosent value) Present Value of Ordinary Annuity of Pods 1% 34 4% 5% 7 9% 10% 12% 15% 10% 10% 20% Period 0.98000010920052 093 0905 0.328 0917 099 0850 877 070 000 Period 2 1.900 1542 19131861850 1830 1.100 1.789 1790 1730 1600 1647 166 165 153 Period 2941 2884 28292775 2723 273 26425772531 2487 2402 2322 2283 2246 2.114 2.100 Period 4 3902 3.1083717 3.63035463 465 3.357 331232403.170 3.037 2.914 2.355 275 2500 2580 Periods 4853 4713 458044524320 4212 4100 3900 3800 3.7913.605 3.430 335252143127 2991 Period 5795 5.601 541782425078491747674828 44864.355 41113370 3695 345 3:32 Period 6728647262306.000 6.75582 5.30 5206 5.099 4888 4554 425 4.100 4.039 3123006 Period 70527325 7000 6733 6400 62106971 5.747 5535 5335494630 4.417 434440783 Period 8.5668.1627.786 TASS 7.106.30268156247 595 5.750 5.30 4.9004772 SOT 40403 Period 10 9:471 883 8.530111 77227-0070246.710 645 6.545 5.650521680104393 4.414 4112 Period 11 10368787925070030577497.136.805 6495 539 545 5234502946564327 Period 12 11.255 10.575.540.35 366347943 75367.151 6.8146.1945.600.421 5107470 4430 Period 13 12.141148103599 9390 8853358790474877.103.424 5542 5583 5342 4310 4533 Period 1413004 12.100 1129010563902958745 62447.7867357 6.8286.0025.724 5.455.000 4611 Period 15 13.5 12.840 11.00 11.118 10.30.712 9109 8598.0017605606142584755755004675 Period 16 1471813.578129111652 10.03.10 2.4478851 8.313 7234691462055.255.60524750 Period 171552142021316612166 112741047707632.1228544.602 7.1206373 6047 574 5222 4.775 Period 18 18.30 14.902 13.75412650 11.0010.02810058.372 1.796201 72506467 6.128 5810 5.273 4812 Period 19 1720 15.678143841213 1201 11.55810390.6048950836578855061986.8776.316 484 Period 20 18.0 16 36 14877 1350 1248211.4T0 10.504 938 9.129 5147.450 0.623.20 5.329354870 Period 21 18.8571701115.415 14.029 12.3211170408 10.0179292 8845 7552 8687 6.31256736.4499 Period 22 19.560 176561583745113161204211061102019.4428.712 754560 35011 5450409 Period 23 20:451821246414657 13.4 12.300 11.272 103719508833 1.710 6.70 6.00 6.045424325 Print Done Enter any number in the edit fields and then click Check Answer Print Done 3 parts remaining

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