Alton Manufacturing, Inc. has a manufacturing machine that needs attention. i (Click the lcon to view additional information.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of S1 table.) Alton expects the following net cash inflows from the two options: EEB(Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Alton uses straight-line depreciation and requires an annual retum of 12 % . (Click the icon to view Future Value X Data Table Read the recuirements Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these tvo options. Purchase New Year Refurbish Current Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). Machine Machine X Net Cash Outflows Net Cash Inflows More Info 1.070,000 $ 120.000 1 Amount Invested Accumulated Yea Annual 460.000 310.000 1,300,000 400.000 3 250,000 1 a00 000 IErerbished Alton exnents the machine to last 340.000 4 190,000 2 another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $1,500,000. A new machine would last 10 years and have no residual value. 130,000 280,000 3 130,000 6 280,000 7 130,000 280.000 5 130,000 280.000 Print Done 6 9 280.000 280.000 10 Requirements 2,340,000 $ 3.000.000 Totel Enter any number in the edit fields and then click Check Answen 1 Compute the payback, the ARR, the NPV, and the profitability index of these Print Done two options. O parts remalning 2 Which option should Alton choose? Why? Check