ABC Corporation has a machine that requires repairs or should be replaced.   ABC has evaluated the two options and calculated the cash flows resulting from each option as follows:     

Option A: Repair the Machine   

Year     Cash Flow   

 0         $61,500.00    

1          $16,500.00    

2         $33,100.00    

3          $17,500.00    

4          $17,200.00    

5          $10,700.00          

Option B: Buy a new Machine   

Year        Cash Flow    

0            $340,500.00    

1              $54,300.00    

2            $123,000.00    

3            $113,800.00    

4           $122,900.00    

5            $120,100.00          

Conduct the analysis and calculate Payback period for each option, IRR of each option and  PI and NPV for each option at four Discount Rates ( R ) of 8%, 12%, 16%, and 20%