Question: Please help Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost

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Please help Cury Industries is deciding whether to automate one phase of

Cury Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $915,000. Projected net cash inflows are as follows: BE(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 table.) Read the requirements. Requirement 1. Compute this project's NPV using Cury's 14% hurdle rate. Should Cury 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 minus sign for a negative net present value.) Net Cash PV Factor (i Years Inflow = 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 Cury Industries invest in the equipment. Requirement 2. Cury could refurbish the equipment at the end of six years for $102,000. 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 $53,000 residual value at the end of year 7. Should Cury 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 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 net present value.) Cash PV Factor (1 = (outflow)/inflow 14%) Present Value Refurbishment at the end of Year 6 (n = 6) Enter any number in the edit fields and then continue to the next

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