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Swan Industres is deciding whether to automate one phase of its production process. The manulacturing ogvipment has a six-year life and will cost 5905 , ooo. Projected net cash infiows are as follows: (Chck the icon to view the projected net cash anllows.) (Cick the icon to view Present Vawie of \$1 table.) (Cick the ioon to view Present Value of Ordinary Annuly of $1 table.) Read the teavixments Requirement 1. Compute this projecrs NPV using Swan's 14% hurdle rate. Should 5 wan invest in the equipment? Use the following table to calculate the net present value of the project (Enter any factor amounts to frree decimal places, XX Use parentheses or a minus sign for a negafive net. present value.) culate the net present value of the project. (Enter any factor amounts to three dec Reference Present Value af Ordin Requirements 1. Compute this project's NPV using Swan's 14% hurdle rate. Should Swan invest in the equipment? 2. Swan could refurbish the equipment at the end of six years for $102,000. The refurbished equipment could be used one more year, providing $75,000 of net cash inflows in year 7 . Additionally, the refurbished equipment would have a $55,000 residual value at the end of year 7 . Should Swan 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.)

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