Additional Information The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. If refurbished, Alton Manufacturing, Inc. expects the machine to last another 8 years and then have no residual value. Option 2 is to replace the machine at a cost of $2,500,000. A new machine would last 10 years and have no residual value. Net Cash Flows Alton Manufacturina. Inc expects the following net cash Nton Manutacturng, inc has a manulacturing machine that neods aftention Yhow the addional inlormation. Viow the net cash tows: Alon Manutacturing, inc uses straght the depreciation and requires an annual refurn of 14% Eeod the requeruments Virw the Presant Value of slitable Vew the Present Value of Ondinary Antuitr of 51 istie. Vew the Future Voloe of 51 table Vrow the Future Volop of Ordinary Annuity of $1 table. Requirement 1. Compute the payback the ARR, the NPV, and the prottabely index of these fwo options Requirements 1. Compule the poyback, the ARR, the NPV, and the protcabilit index of these wo options 2. Which opton shooks Ahon Manulacturng, Inc choose? Why? Nton Manutacturng, inc has a manulacturing machine that neods aftention Yhow the addional inlormation. Viow the net cash tows: Alon Manutacturing, inc uses straght the depreciation and requires an annual refurn of 14% Eeod the requeruments Virw the Presant Value of slitable Vew the Present Value of Ondinary Antuitr of 51 istie. Vew the Future Voloe of 51 table Vrow the Future Volop of Ordinary Annuity of $1 table. Requirement 1. Compute the payback the ARR, the NPV, and the prottabely index of these fwo options Requirements 1. Compule the poyback, the ARR, the NPV, and the protcabilit index of these wo options 2. Which opton shooks Ahon Manulacturng, Inc choose? Why? Additional Information The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. If refurbished, Alton Manufacturing, Inc. expects the machine to last another 8 years and then have no residual value. Option 2 is to replace the machine at a cost of $2,500,000. A new machine would last 10 years and have no residual value. Net Cash Flows Alton Manufacturina. Inc expects the following net cash Nton Manutacturng, inc has a manulacturing machine that neods aftention Yhow the addional inlormation. Viow the net cash tows: Alon Manutacturing, inc uses straght the depreciation and requires an annual refurn of 14% Eeod the requeruments Virw the Presant Value of slitable Vew the Present Value of Ondinary Antuitr of 51 istie. Vew the Future Voloe of 51 table Vrow the Future Volop of Ordinary Annuity of $1 table. Requirement 1. Compute the payback the ARR, the NPV, and the prottabely index of these fwo options Requirements 1. Compule the poyback, the ARR, the NPV, and the protcabilit index of these wo options 2. Which opton shooks Ahon Manulacturng, Inc choose? Why? Nton Manutacturng, inc has a manulacturing machine that neods aftention Yhow the addional inlormation. Viow the net cash tows: Alon Manutacturing, inc uses straght the depreciation and requires an annual refurn of 14% Eeod the requeruments Virw the Presant Value of slitable Vew the Present Value of Ondinary Antuitr of 51 istie. Vew the Future Voloe of 51 table Vrow the Future Volop of Ordinary Annuity of $1 table. Requirement 1. Compute the payback the ARR, the NPV, and the prottabely index of these fwo options Requirements 1. Compule the poyback, the ARR, the NPV, and the protcabilit index of these wo options 2. Which opton shooks Ahon Manulacturng, Inc choose? Why
