Years Inflow Petal Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $905,000 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 $1 table) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Requirement 1. Compute this project's NPV using Petars 14% hurdle rate Should Petal 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 minu sign for a negative net present value) Net Cash 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 continue to the next question Submit Tes e Text Pages Calculator o ir HA Type here to search 99 hp COLE Projected net cash inflows are as follows: 9 Who automate one phase of its production process. The manufacturing equipment has a six year life and will cost $905,000 (Click the icon to view the projected net cash inflows) Petal Industries invest in the equipment Requirement 2. Petal could refurbish the equipment at the end of six years for $102,000 The refurbished equipment could be used one more year, providing 577,000 of net cash inflows in year 7 Additionally, the refurbished equipment would have a 554,000 residual value at the end of year 7 Should Petal 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 walue) Calculate the NPV of the refurbishment (Enter any factor amounts to three decimal places, XXXX Use parentheses or a minus sign for cash outlows and for a negative net present value) Cash PV Factor (i - (outflow)/inflow 14%) Present Value Refurbishment at the end of Year 6 (n-6) Cash inflows in Year 7 in 7) Residual value (n=7) 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 Petal Industries' original decision regarding the equipment investment Enter any number in the edit fields and then continue to the next question e Text Pages Calculator Submit Test Type here to search O BE 199 hp 9% Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% Period 1 8% 0.990 0.980 0.971 0.962 0.952 0.943 0.93 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 10% 12% 14% 15% 16% 18% 20% 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 0.718 0.694 Perlod 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.562 0.516 0482 Perlod 5 0.961 0.906 0.863 0.822 0.784 0.747 0.713 0681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0410 0.370 0.335 Period 7 10.933 0.871 0.813 0.760 0.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.5820540 0.502 0.467 04040.351 0.327 0.305 0266 0233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.5440.500 0.460 0.4240361 0.308 0.284 0.263 0225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.3500 287 0237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.4440.397 0.356 0.319 0257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0469 0.415 0.368 0.3260 290 0229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0661 0.577 0.505 0.442 0.3 0340 0.299 0.263 0.205 0.160 0.141 0.125 0099 0.078 Period 15 0.861 0.743 06420555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.0840065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.3390292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0 605 0.513 0.436 0.371 0.3170270 0 231 0.198 0.146 0.108 0.093 0.000 0.060 0045 Period 18 0.836 0.700 0.587 0494 0.416 0,350 0.296 0.250 0212 0.180 0.130 0095 0,081 0.069 0.051 0038 Period 19 0.828 0.686 0570 0.475 0.396 0.331 0.277 0232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0031 Period 20 0.820 0.673 0.5540456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.2940.242 0.199 0.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0226 0.184 0.150 0.123 0.0830.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.6340 50704060.326 0.262 0211 0.1700.138 0.112 0,074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.3900 3100.247 0.197 0.158 0.126 0.1020.066 0043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.059 0038 0.030 0.024 0.0160.010 Period 26 0.772 0.5980464 0.361 0.281 0220 0.172 0.135 0.106 0.084 0.053 0.033 0.025 0.021 0.014 0.009 0.125 0.098 0.076 0.047 0.029 0.023 0.018 0.0110.007 Period 27 0.764 0.586 0.450 0.347 0.2680 207 0.161 0.116 0090 0.059 0.042 0.025 0.0200.0160.010 0.006 Period 28 0.757 0.5740.437 0333 0.255 0.1960.150 0.1070 082 0.063 0.037 0.022 0.017 0.014 0.008 0.005 Period 29 0.749 0.563 0.42403210 243 0.185 0.141 0 099 0.075 0.0570033 0.020 0,015 0,012 0.007 0.004 Period 30 0.742 0.552 0.412 0.308 0231 0.1740.131 Period 40 10.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.0110.005 0.0040.003 0.001 0.001 Period 50 0,608 0.372 0228 0.141 0.087 0.054 0.034 0.021 0.0130.0090.003 0.001 0.001 0.001