Compute this project's NPV using Gammaro Industries'

18% hurdle rate.

Should the company invest in the equipment? Why or why not?

2. Gammaro Industries could refurbish the equipment at the end of six years for

$101,000. The refurbished equipment could be used one more year, providing

$78.000 of net cash inflows in Year 7. In addition, the refurbished equipment

would have a $51,000 residual value at the end of Year 7. Should Gammaro

Industries invest in the equipment and refurbish it after six years? Why or

why not? (Hint: In addition to your answer to Requirement 1, discount the

additional cash outflow and inflows back to the present value.)

2. Gammaro Industries could refurbish the equipment at the end of six years for $101,000. The refurbished equipment could be used one more year, providing $78,000 of net cash inflows in Year 7 . In addition, the refurbished equipment would have a $51,000 residual value at the end of Year 7 . Should Gammaro Industries invest in the equipment and refurbish it after six years? Why or why not? (Hint: In addition to your answer to Requirement 1, discount the additional cash outflow and inflows back to the present value.) (a) forlowen: satia Tabit loon to viaw the present value table. (Click the icon to view the fussure value table.) (Click the ioon to view the prese (Click the icon to view the future value annuity tabie.) Requirement 1. Compute this projects NPV using Gammaro Industries' 16% hurdle rate. Should Gammaro industries invest in the oquiprnent? Why or why nat? Begin by computing the project's NPV (net present valise). (Round your answer to the nearest whole dollar. Use parentheses of a minus sign for negative net bresent value i) Net present value ndustries invest in the se parentheses or a r Reference Reference Reference bs pent? Why or why no?? Reference