View the projected net cash inflows.

Read the requirements.

View the Present Value of $$1$ table.

View the Present Value of Ordinary Annuity of $$1$ table.

Requirement $1.$ Compute this project's NPV using Algae Industries' $16\%$ hurdle rate. Should Algae Industries 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, XXXX$.$ Use parentheses or a minus sign for a negative net present value.$)$

Years

Year $1$ Present value of each year's inflow: $)=(1$

Year $2$ Present value of each year's inflow: $)=(2$

Year $3$ Present value of each year's inflow: $)=(3$

Year $4$ Present value of each year's inflow: $)=(4$

Year $5$ Present value of each year's inflow: $)=(5$

Year $6$ Present value of each year's inflow: $)=(6$

Total PV of cash inflows

Year $0$ Initial investment

Net present value of the project

Requirements

Compute this project's NPV using Algae Industries' $16\%$ hurdle rate. Should Algae Industries invest in the equipment?

Algae Industries could refurbish the equipment at the end of $6$ years for $$107,000.$ The refurbished equipment could be used one more year, providing $$72,000$ of net cash inflows in Year $7.$ Additionally, the refurbished equipment would have a $$59,000$ residual value at the end of Year $7.$ Should Algae Industries invest in the equipment and refurbish it after $6$ years? $($Hint: In addition to your answer to Requirement $1,$ discount the additional cash outflow and inflows back to the present value.$)$

Projected Net Cash Inflows

$\backslash$table$[[$Year $1,$$$,259,000],[$Year $2,,253,000],[$Year $3,,235,000],[$Year $4,,223,000],[$Year $5,,213,000],[$Year $6,,194,000]]$