(Click the icon to view additional information.) Gilpin expects the following net cash inflows from the two options: EB (Click the icon to view the net cash flows.) Gilpin uses straight-line depreciation and requires an annual return of 10%. Requirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). Net Cash Outflows Year 0 $ 1 2 3 4 Amount Invested Net Cash Inflows Annual 800,000 Accumulated More info Help me solve this Ete (Click the icon to view Data table (Click the icon to vie Refurbish Current (Click the icon to view Year Machine Purchase New Machine Year 1 $ 20,000 $ 1,230,000 Year 2 460,000 610,000 Year 3 340,000 490,000 Year 4 220,000 370,000 Year 5 100,000 250,000 Year 6 100,000 250,000 Year 7 100,000 250,000 Year 8 100,000 250,000 Year 9 250,000 250.000 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $800,000. If refurbished, Gilpin expects the machine to last another eight years and then have no residual value. Option 2 is to replace the machine at a cost of $2,100,000. A new machine would last 10 years and have no residual value. Print Done