ABC Corporation has a machine that requires repairs or should be replaced. You have recently been hired by XYZ corporation and your first assignment is to help ABC has evaluated the two options and calculated the cash flows resulting them decide which of these two options should be pursued. You would like to apply the from each option as follows: capital budgeting and Time Value of Money concepts you have learnt in FIN 301 to analyze the solution and present it to your boss in three days. Option A: Repair the Machine Year Cash Flow Conduct the analysis and calculate Payback period for each option, IRR of each option and 0 $61,600.00 PI and NPV for each option at four Discount Rates ( R ) of 9%, 12%, 15%, and 18% 1 $17,500.00 2 $32,130.00 Write a memo to your boss, explaining the results of your analysis, your decision 3 $18,500.00 and include a table and a chart showing your analysis. 4 $16,200.00 5 $10,500.00 Option B: Buy a new Machine # Requirements: A B Year Cash Flow 1 Compute Pay Back for each Option Pay Back 0 $340,500.00 2 Compute IRR for each Option IRR 1 $57,300.00 2 $105,000.00 Compute NPV and PI for each option using disccount rates: 3 $134,500.00 # R NPV A NPV B # R PI A PI B 4 $122,900.00 3 9% 7 9% 5 $120,100.00 4 12% 8 12% 5 15% 9 15% 6 18% 10 18% 11 NPV Profile chart with R on X Axis and NPV on Y axis (Two lines one each for NPV A and NPV B) 12 A One page professional memo written in MS Word explaining your decision betwwen options A and B. Note: Use Workout Sheet to compute and showcase your work. IT IS IMPORTANT THAT NPV & IRR IS COMPUTED USING EXCEL IN BUILT FUNCTIONS.