Question: Requirements 1. Compute this project's NPV using Sweeney Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2.

Requirements 1. Compute this project's NPV using Sweeney Industries' 14% hurdle rate. Should the company invest in the equipment? Why or why not? 2. Sweeney Industries could refurbish the equipment at the end of six years for $105,000. 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 $54,000 residual value at the end of Year 7. Should Sweeney 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.) Print Done - X

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