Bentfield Industries is deciding whether to automate one phase of its production process. The manufacturing equipr

cash inflows are as follows:

$($Click the icon to view the projected net cash inflows.$)$

$($Click the icon to view the present value table.$)$

$($Click the icon to view the present value annuity table

$($Click the icon to view the future value table.$)$

$($Click the icon to view the future value annuity table.$)$

Read the requirements.

Requirement $1.$ Compute this project's NPV using Bentfield Industries' $14\%$ hurdle rate. Should Bentfield Industries

Begin by computing the project's NPV $($net present value$).($Round your answer to the nearest whole dollar. Use par

Net present value

Bentfield Industries

invest in the equipment because its NPV is

Requirement $2.$ Bentfield Industries could refurbish the equipment at the end of six years for $$100,000.$ The refurbi,

$$74,000$ of net cash inflows in Year $7.$ In addition, the refurbished equipment would have a $$51,000$ residual value a

Data table

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.$)$

Calculate the additional NPV provided from the refurbishment. $($Round your answer to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.$)$

Additional NPV provided from refurbishment

The refurbishment provides a

NPV$.$ The refurbishment NPV is

to overcome the original NPV of the equipment. Therefore, the refurbishment

alter Bentfield Industries' original decision regarding the equipment investment.