net present value (nvp) & refurbishing

net present value (nvp) & refurbishing

manufacturing equipment has a 6-year life, cost=$900,000. projected net cash inflows:
year
1 $264,000
2 $251,000
3 $228,000
4 $213,000
5 $202,000
6 $176,000
compute this project’s NVP using the industry’s 14% hurdle rate. should the industry invest in the equipment?
the industry could refurbish the equipment…

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