Eve Industries is deciding whether to automate one phase of its production process. The manufacturing equipment has a six-year life and will cost $920,000. Projected net cash inflows are as follows: E: (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 Eve's 16% hurdle rate. Should Eve 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.) Present Net Cash Inflow PV Factor (i = 16%) Years Value 2 3 4 Present value of each year's inflow: (n = 1) (n=2) (n = 3) (n = 4) (n = 5) (n = 6) Total PV of cash inflows Initial investment Net present value of the project A Data Table - X Year 1 $ Year 2 Year 3 Year 4 Year 5 Year 6 265,000 250,000 223,000 210,000 204,000 173,000 Print Done - X Reference Periods 15% 0.870 0.756 0.658 0.572 0.497 16% 0.862 0.743 0.641 0.552 0.476 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 1853 0.870 0.861 0.853 2% 3% 0.980 0.971 0.961 0.943 0.942 0.915 0.924 | 0.888 0.906 0.863 0.888 0.837 0.871 0.813 0.789 0.837 0.766 0.820 0.744 0.804 0.722 0.788 0.701 0.773 0.681 0.758 0.661 0.743 0.642 0.728 0.623 0.714 0.605 0.700 0.587 0.686 0.570 0.673 0.554 0.660 0.538 0.647 0.522 0.634 0.507 0.622 0.492 0.478 0.598 0.464 0.586 0.450 0.574 0.437 0.563 0.424 0.552 0.412 0.453 0.307 0.372 0.228 4% 5% 6% 0.962 0.952 0.943 0.925 0.907 0.890 0.8890.864 0.840 0.855 0.823 0.792 0.822 0.784 0.747 0.790 0.746 0.705 0.760 0.711 0.665 0.731 0.677 0.627 0.703 0.645 0.592 0.676 0.614 0.558 0.650 0.585 0.527 0.625 0.557 0.497 0.601 0.530 0.469 0.577 0.505 0.442 0.555 0.481 0.417 0.534 0.458 0.394 0.513 0.436 0.371 0.494 0.416 0.350 0.475 0.396 0.331 0.456 0.377 0.312 | 0.439 0.359 0.294 0.422 0.342 0.278 0.406 0.326 0.262 0.390 0.310 0.247 0.375 0.295 0.233 0.361 0.281 0.220 0.347 0.268 0.207 0.333 0.255 0.196 0.321 0.243 0.185 0.308 0.231 0.174 0.208 0.1420.097 0.141 0.087 0.054 Present Value of $1 7% 8% 9% 0.935 0.926 0.917 0.873 0.8570.842 0.816 0.794 0.772 0.763 0.735 0.708 0.713 0.681 0.650 0.666 0.630 0.596 0.623 0.583 0.547 0.582 0.540 0.502 0.544 0.500 0.460 0.508 0.463 0.422 0.475 0.429 0.388 0.444 0.397 0.356 0.415 | 0.368 0.326 0.388 0.340 0.299 0.362 0.315 0.275 0.339 0.292 0.252 0.317 0.270 0.231 0.296 0.250 0.212 0.277 0.232 0.194 0.258 0.215 0.178 0.242 0.1990.164 226 0.184 0.150 0.170 0.138 0.158 0.126 0.184 0.146 0.116 0.172 0.135 0.106 0.161 0.125 0.098 0.116 0.090 0.141 0.107 0.082 0.131 0.099 0.075 0.067 0.046 0.032 0.021 0.013 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 0.263 0.239 0.218 0.198 0.180 0.164 0.149 | 0.135 0.123 0.112 0.102 0.092 0.084 0.076 | 0.069 0.063 0.057 0.022 0.009 12% 14% 0.893 0.877 0.797 0.769 0.712 0.675 0.636 0.592 0.567 0.519 0.507 0.456 0.452 0.400 0.404 0.351 0.361 0.308 0.322 0.270 0.287 | 0.237 0.257 0.208 0.229 0.182 0.205 0.160 0.183 0.140 0.163 0.123 0.146 0.108 0.130 0.095 0.116 0.083 | 0.104 0.073 0.093 0.064 0.083 0.074 0.049 0.066 0.043 0.059 0.038 0.053 0.033 0.047 0.029 0.042 0.026 0.037 0.022 0.033 0.020 0.011 0.005 0.003 0.001 0.432 0.376 0.327 0.284 0.247 0.215 0.187 0.163 0.141 0.123 0.107 0.093 0.081 0.070 0.061 0.053 0.046 | 0.040 0.035 0.030 0.026 0.023 0.020 0.017 0.015 0.004 0.001 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 0.071 0.060 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.011 0.010 0.008 0.007 0.001 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.033 0.028 0.024 0.021 0.018 0.016 0.014 0.012 0.003 0.001 0.828 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.022 0.018 0.015 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.001 0.056 0.610 0.150 0.749 0.742 0.672 0.608 0.034 Print Done i Reference Periods 14% 0.877 1.647 1% 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 10.368 2.322 2.914 3.433 3.889 20% 0.833 1.528 2.106 2.589 2.991 3.326 5.206 288 .639 3.837 4.031 5.759 946 5.216 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469 7.562 4.327 11.255 4.439 Present Value of Ordinary Annuity of $1 2% 3% 4% 5% 6% 7% | 8% 9% 10% 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 1.942 1.913 1.886 1.859 1.833 1.8081.783 1.759 1.736 2.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 6.472 6.230 6.002 5.786 5.582 5.389 5.033 4.868 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 9.787 9.253 8.760 8.306 | 7.887 7.499 7.139 6.805 6.495 10.575 9.954 9.3858.8638.384 7.943 7.536 7.161 6.814 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 12.106 11.296 | 10.563 9.899 9.295 8.745 8.244 7.786 7.367 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 15.937 | 14.451 13.163 12.042 11.061 10.201 9.442 8.772 16.444 | 14.857 13.489 12.303 10.371 9.580 8.883 18.914 16.936 13.799 12.550 11.469 10.529 9.707 8.985 19.523 17.413 15.622 14.094 12.783 11.654 10.675 9.823 9.077 20.121 | 17.877 15.983 14.375 13.003 11.826 10.8109.929 | 9.161 .707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 19.188 16.984 15.141 13.591 | 12.278 11.158 10.1989.370 22.396 19.600 | 17.292 15.372 13.765 12.409 11.258 10.2749.427 27.355 23.115 19.793 17.159 15.046 13.332 11.925 10.757 9.779 31.424 25.730 21.482 18.256 15.762 13.801 12.233 10.962 9.915 12.134 15% 16% 0.870 0.862 1.626 1.605 2.283 2.246 2.855 2.798 3.352 3.274 3.784 3.685 4.160 4.039 4.487 4.344 4.772 4.607 5.019 4.833 5.234 5.029 5.421 5.197 5.583 5.342 5.724 5.468 5.847 5.575 5.954 5.669 6.047 5.749 6.128 5.818 6.198 5.877 6.259 5.929 6.312 5.973 6.359 6.011 6.399 6.044 6.434 6.073 6.464 6.097 6.491 6.118 6.514 6.136 6.534 6.152 6.551 6.166 6.566 6.177 6.642 6.233 6.6616.246 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 5.492 5.502 5.510 5.517 5.548 5.554 4.533 4.611 4.675 4.730 4.775 5.453 5.660 1842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6.687 6.743 6.792 835 6.873 6.906 1935 6.961 6.983 7.003 7.105 7.133 4.812 7.645 15.247 7.718 7.784 7.843 7.896 7.943 7.984 8.022 8.055 8.244 8.304 4.870 4.891 4.909 4.925 4.937 4.948 4.956 4.964 4.970 4.975 4.979 4.997 4.999 25.808 39.196 Print Done