$ (Click the icon to view Present Value of $1 table.) Kilmer Manufacturing, Inc. has a manufacturing machine that needs attention (Click the icon to view additional information.) Kilmer expects the following net cash inflows from the two options: Click the icon to view the net cash flows.) Kilmer uses straight-line depreciation and requires an annual return of 10% (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements 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 Inflows Year Net Cash Outflows Amount Invested S 1,200,000 Annual Accumulated 0 2 3 4 5 6 7 8 years (Round your answer to one decimal place.) The payback for Option 1 (refurbish current machine) is Now enmelete the payback schedule for Option 2 (purchase). ayback, the ARR, the NPV, and the profitability index of these two options. options. Begin by completing the payback schedule for Option 1 (refurbish). Net Cash Inflows i More Info J The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. If refurbished, Kilmer 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 $4,600,000. A new machine would last 10 years and have no residual value. Print Done decimal place.) years (refurbish current machine) is (Click the icon to view Future Val es an annual return of 10%. (Click the icon to view Future Valu i Data Table R. th Year Refurbish Current Purchase New sh lo Machine Machine A 1 $ 440,000 $ 370,000 2 3 280.000 4 190.000 100,000 5 4,380,000 490,000 400,000 310,000 220,000 220,000 220.000 220.000 220,000 220.000 6 100,000 7 100,000 100,000 8 9 10 $ 1,680,000 $ 6,900,000 Total achin Print Done n 2 Cash Inflows er Reference - er ci Jable er Periods ble) 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 5% 0.952 0.907 0.864 0.823 0.784 10% 0.909 0.826 0751 0.683 0.621 12% 0.893 0797 0712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0351 0.308 0.270 ir 15% 0.870 0.756 0.658 0.572 0.497 0432 0.376 0.327 0.284 0.247 16% 0862 0.743 0.641 0552 0.476 0.410 0.354 0.305 0.263 0.227 18% 0 847 0.718 0609 0516 0.437 20% 0833 0694 0579 0482 0402 pu 6 7 8 9 10 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.564 0513 0467 0.424 0.386 0.507 0.452 0404 0.361 0322 0.370 0314 0.266 0.225 0.191 0335 0.279 0233 0.194 0.162 ear 0.162 11 12 13 14 15 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0714 0.700 0.686 0.673 0.722 0.701 0.681 0.661 0.642 0.350 0.319 0290 0.263 0.239 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0442 0417 0.394 0.371 0.350 0.331 0.312 0.294 0.278 0.262 0.247 0.233 0.220 0.207 0.196 0.185 0.174 0.287 0.257 0.229 0.205 0.183 Present Value of $1 7% 8% 9% 0.935 0.926 0.917 0.873 0.857 0842 0.816 0.794 0.772 0.763 0.735 0.708 0.713 0681 0.650 0.656 0.630 0.596 0.623 0.583 0547 0.582 0.540 0.502 0544 0.500 0.460 0.508 0.463 0.422 0.475 0.429 0.389 0.444 0.397 0.356 0.415 0.368 0.326 0.388 0.340 0.299 0.362 0.315 0.275 0.339 0.292 0.252 0.317 0.270 0.231 0.296 0250 0.212 0.277 0.232 0.194 0.258 0.215 0.178 0.242 0.199 0.164 0226 0.184 0.150 0.211 0.170 0.138 0.197 0.158 0.125 0.184 0.146 0.116 0.896 0.887 0.879 0870 0861 0.853 0.844 0.836 0.828 0 820 0.215 0.187 0.163 0.141 0.123 0.135 0.112 0.093 0.078 0.065 0.585 0.567 0.530 0505 0.481 0.458 0.436 0.416 0.396 0.377 3 TT 16 17 18 19 20 0.650 0.625 0.601 0.577 0.555 0.534 0.513 0494 0.475 0.456 0.439 0422 0.406 0.390 0.375 0.361 0.347 0.333 0321 0 308 0.623 0605 0587 0.570 0.554 0.107 0.093 0.081 0.070 0.061 0218 0.198 0.180 0.164 0.149 0.135 0.123 0.112 0.102 0.092 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.064 0.056 0.049 0.043 0.038 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0038 0.033 0.028 0.024 0.137 0.116 0.099 0.084 0.071 0.060 0051 0.043 0037 0.031 0.026 0.022 0.019 0.016 0,054 0.045 0.038 0.031 0.026 0.022 0.018 0.015 0.013 0.010 3 21 22 23 24 25 nd 0.811 0.803 0.795 0.788 0.780 0.772 0.764 0.757 0.749 0742 0672 0.608 0.660 0.647 0.634 0.622 0.610 0.598 0.586 0574 0.563 0.552 0.453 0.372 0.359 0.342 0.326 0.310 0.295 0.281 0.268 0.255 0.243 0.231 26 27 28 29 30 0.538 0.522 0.507 0.492 0.478 0.464 0.450 0.437 0.424 0.412 0.307 0228 0.053 0.046 0.040 0.035 0.030 0.026 0023 0020 0.017 0.015 0.172 0.161 0.150 0.141 0.131 0.135 0.125 0.116 0.107 0.099 0.106 0.098 0.090 0.082 0.075 0.084 0.076 0.069 0.063 0.057 0.053 0.047 0.042 0.037 0033 0.011 0.003 0.033 0.029 0026 0.022 0.020 0.021 0.018 0.016 0014 0.012 0.003 0.001 0.014 0.011 0010 0008 0007 0.009 0.007 0.006 0.006 0.004 0.097 40 0.032 0022 0.005 0.001 0.001 0208 0.141 0.142 0.087 0.067 0.034 0.046 0.021 0.004 0.001 50 0.054 0.013 0.009 0.001 0 + Print Done sel Periods 1 2 3 4 5 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2914 3.433 15% 0.870 1628 2.283 2.855 3.352 16% 0.862 1.605 2 246 2.798 3.274 18% 0.847 1566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2991 6 7 8 9 10 4.111 4.564 4.968 5,328 5.650 3.889 4 288 4.639 4.946 5.216 3.685 4.039 4344 4.607 4.833 8.863 11 12. 13 14 15 Present Value of Ordinary Annuity of $1 1% 2% 3% 5% 6% 7% 8% 9% 10% 0.990 0.980 0971 0.962 0.952 0.943 0.935 0.926 0917 0.909 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 2.941 2884 2.829 2.775 2.723 2673 2.624 2577 2531 2487 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3 312 3.240 3,170 4.853 4.713 4.580 4452 4329 4212 4.100 3.993 3.890 3.791 5.795 5.601 5417 5.242 5.076 4917 4.767 4623 4.486 4.355 6.728 6.472 6.230 6.002 5.786 5582 5.389 5.206 5.033 4.868 7.652 7325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 9471 8.983 8.530 8.111 7.722 7360 7.024 6.710 6.418 6.145 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 11 255 10.575 9.954 9.385 8.384 7.943 7.536 7,161 6.814 12.134 | 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8244 7.786 7.367 13.865 12.849 11938 11.118 10.380 9.712 9.108 8.559 8,061 7.606 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 15.562 14 292 13.166 12 166 11 274 10.4779.763 9.122 8.544 8.022 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 17 226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.514 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 19.660 17.658 15.937 14.451 13.163 12042 11.061 10.2019.442 8.772 20.456 18 292 16.444 14.857 13.489 12 303 11 272 10.371 9.580 8.883 21.243 18.914 16.936 15 247 13.799 12 550 11 469 10.529 9.707 8.985 22.023 19.523 17 41315.622 14.094 12 783 11.654 10.675 9.823 9.077 22.795 20.12117.877 15 983 14.375 13.003 11.826 10.8109.929 9.161 23.560 20.707 18.327 16 330 14 643 13.211 11.987 10.935 10.027 9237 24 316 21 281 18.764 16.663 14.898 13.406 12.137 11.051 10.116 9.307 25.066 21.844 19 188 16 984 15.141 13.591 12 278 11.158 10.198 | 9.370 25.808 22 396 19.600 17.292 15.372 13.765 12 409 11 258 10274 9.427 32.835 27.355 23.115 19.793 17.159 | 15.046 13.332 11.925 10.757 9.779 5.938 6.194 6.424 6.628 6.811 5029 5.197 5.342 5.468 5.575 3.784 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.724 5.847 5.954 6.047 6.128 6.198 6.259 6.312 6.359 6.399 6.434 6.464 3.498 3.326 3.812 3.605 4.078 3.837 4.303 4031 4.494 4.192 4656 4327 4793 4439 4.910 4.533 5008 4.611 5092 | 4675 5.162 4730 5 222 4775 5273 4812 5.316 4844 5.353 4870 5.384 4891 5 410 4909 5.432 4.925 5.451 4.937 5.467 4.948 16 17 18 19 20 5.453 5.660 5.842 6.002 6142 6.265 6.373 6.467 6.550 6.623 6.687 6.743 6.792 6.835 6.873 6.906 6.935 6.961 6.983 7.003 6.974 7.120 7.250 7.366 7.469 5.669 5.749 5.818 5.877 5.929 21 22 23 24 25 7.562 7.645 7.718 7.784 7.843 6.973 6.011 6.044 6.073 6.097 26 27 7.896 7.943 7.984 8.022 8.055 8 244 6.491 6.514 6.534 6.551 6566 6.118 6.136 6.152 6.166 6.177 5.480 5.492 5502 5.510 5.517 4966 4964 4.970 4.975 4.979 29 30 40 6.642 6233 5.548 4.997 7.105 7.133 50 39.196 31 424 25.730 21.482 18 256 15.762 13.801 12 233 10.962 9.915 8 304 6661 6.246 5.554 4 999 Future Value of $1 Periods ho 2 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 7% 1.070 1.145 1.225 1.311 1.403 8% 1.080 1.166 1.260 1,360 1.469 9% 1.090 1.188 1.295 1.412 1.539 10% 1.100 1 210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 4 5 15% 1.150 1.323 1.521 1.749 2011 2.313 2660 3.059 3.518 4.046 sw 6 7 8 9 10 1.062 1.072 1.083 1.094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.501 1.606 1.718 1.838 1.967 1.587 1.714 1.851 1.999 2.159 1.677 1.828 1.993 2.172 2.367 1.974 2.211 2476 2.773 3.106 2.195 2502 2.853 3.252 3.707 ara 1.480 he 1.772 1.949 2144 2.358 2 594 2.853 3.138 3.452 3.798 4.177 11 12 13 14 15 Cal 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 1.384 1.426 1.469 1.513 1.558 1.710 1.796 1.886 1.980 2.079 1.898 2012 2.133 2.261 2.397 2.105 2252 2410 2579 2759 2332 2518 2.720 2.937 3.172 2.580 2.813 3.066 3.342 3.642 3.479 3.896 4.363 4.887 5.474 4226 4.818 5.492 6.261 7.138 4.652 5.350 6.153 7.076 8.137 ou 1.539 1.601 1.665 1.732 1.801 1.873 1.948 2.026 2.107 2.191 16 17 18 19 20 1.173 1.184 1.196 1.208 1.220 1.373 1.400 1.428 1.457 1.486 1.605 1.653 1.702 1.754 1.806 2.183 2292 2407 2.527 2.653 2952 3.159 3.380 3.617 3.870 3.426 3.700 3.996 4.316 4.661 3.970 4.328 4.717 5.142 5.604 4.595 5.054 5.560 6.116 6.727 6.130 6.866 7.690 8.613 9.646 8.137 9.276 10.58 12.06 13.74 9.358 10.76 1238 14.23 16.37 my 2540 2.693 2.854 3.026 3.207 3.400 3.604 3.820 4.049 4.292 21 22 23 24 25 1.232 1.245 1.257 1.270 1.282 1.516 1.546 1.577 1.608 1.641 1.860 1.916 1.974 2.033 2.094 2279 2.370 2.465 2.563 2666 2.786 2.925 3.072 3.225 3.386 4.141 4.430 4.741 5.072 5.427 5,034 5.437 5.871 6.341 6.848 6.109 6.659 7.258 7.911 8.623 7.400 8.140 8.954 9.850 10.83 10.80 12.10 13.55 15.18 17.00 15.67 17.86 20.36 23.21 26.46 18.82 21.64 24.89 28.63 32.92 37.86 43.54 50.07 57 58 66.21 26 27 28 29 30 1.295 1.308 1.321 1.335 1.348 1,673 1.707 1.741 1.776 1.811 2 208 2.157 2.221 2.288 2357 2.427 3.262 2772 2 883 2.999 3.119 3.243 3.556 3.733 3.920 4.116 4.322 4.549 4.822 5.112 5.418 5.743 5.807 6.214 6.849 7.114 7.612 14.97 7.396 7.988 8.627 9.317 10.06 9.399 10.25 11.17 12.17 13.27 11.92 13.11 14.42 15.86 17.45 19.04 21.32 23.88 26.75 29.96 30.17 34.39 39.20 44.69 50.95 40 1.489 4.801 7.040 10.29 21.72 31.41 45 26 93.05 188.9 267.9 50 1.645 2692 4.384 7.107 11.47 18.42 29.46 46.90 74.36 117.4 289.0 7002 1,084 Reference Periods 1 2 3 4 5 1.000 2.010 3.030 4.060 5.101 2% 1.000 2020 3,060 4.122 5.204 3% 1.000 2030 3.091 4.184 5.309 10% 1.000 2.100 3.310 4.641 6.105 7.716 9.487 11.44 13.58 15.94 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 15% 1.000 2.150 3.473 4993 6.742 answ 6 7 8 9 10 6.152 7.214 8.286 9.369 10.46 6.468 7.662 8.892 10.16 11.46 8.115 10.09 12.30 14.78 17.55 8,536 10.73 13.23 16.09 19.34 8.754 11.07 13.73 16.79 20.30 for a 6.308 7.434 8.583 9.755 10.95 12.17 13.41 14.68 15.97 17.29 e the et Ca 11 12 13 14 15 11.57 12.68 13.81 14.95 16.10 12.81 14.19 15.62 17.09 18.60 23.04 27 27 32.09 37.58 43.84 24 35 29.00 34 35 40.50 47.58 Amou Future Value of Ordinary Annuity of $1 4% 5% 6% 7% 8% 9% 1.000 1.000 1.000 1.000 1.000 1.000 2.040 2.050 2060 2070 2.080 2.090 3.122 3.153 3.184 3215 3246 3.278 4.246 4.310 4.375 4.440 4.506 4.573 5.416 5.526 5.637 5751 5.867 5.985 6.633 6.802 6.975 7.153 7.336 7.523 7.898 8.142 8.394 8.654 8.923 9.200 9.214 9.549 9.897 10.260 10.64 11.03 10.58 11.03 11.49 11.98 12.49 13.02 12.01 12 58 13.18 13.82 14.49 15.19 13.49 14 21 14.97 15.78 16.65 17.56 15.03 15.92 16.87 17.89 18.98 20.14 16.63 17.71 18.88 20.14 21.50 22.95 18.29 19.60 21.02 22.55 24.21 26.02 20.02 21.58 23.28 25.13 27.15 29.36 21.82 23.66 25.67 27.89 30.32 33.00 23.70 25.84 28.21 30.84 33.75 36.97 25.65 28.13 30.91 34.00 37.45 41.30 27.67 30.54 33.76 37.38 41.45 46.02 29.78 33.07 36.79 41.00 45.76 51.16 31.97 35.72 39.99 44.87 50.42 56.76 34.25 38.51 43.39 49.01 55.46 62.87 36.62 41.43 47.00 53.44 60.89 69.53 39.08 44.50 50.82 58.18 66.76 76.79 41.65 47.73 54.86 63.25 73.11 84.70 44.31 51.11 59.16 68.68 79.95 93.32 47.08 54.67 63.71 74.48 87.35 102.7 49.97 58.40 68.53 80.70 95.34 113.0 52.97 62.32 73.64 87.35 104.0 124.1 56.08 79.06 94.46 113.3 136.3 95.03 120.8 154.8 199.6 259.1 337.9 152.7 209.3 290.3 406,5 573.8 815.1 18.53 21.38 24.52 27.98 31.77 35.95 40.54 45.60 51.16 57 28 20.65 24.13 28.03 32.39 37 28 42.75 48 88 55.75 63.44 72.05 16 17 18 19 20 17.26 18.43 19.61 20.81 22.02 18.64 20.01 21.41 22.84 24.30 20.16 21.76 23.41 25.12 26.87 50.98 59.12 68.39 78.97 9102 55.72 65.08 75 84 88.21 any 1024 21 22 23 24 25 23.24 24.47 25.72 25.78 27.30 28.85 30.42 32.03 28.68 30.54 32.45 34.43 36.46 64.00 71.40 79.54 88.50 98.35 81.70 92.50 104.6 1182 133.3 104.8 120.4 138.3 158.7 181.9 26.97 28.24 26 27 28 29 30 29.53 30.82 32.13 33.45 34.78 33.67 35.34 37.05 38.79 40.57 38.55 40.71 42.93 45.22 47.58 118.8 1376 159.3 1842 212.8 245.7 283.6 327.1 3772 434.7 1,779 109.2 121.1 1342 148.6 164.5 150.3 169.4 190.7 214.6 241.3 208.3 238 5 2729 312.1 356.8 1,342 4,995 66.44 4426 767.1 40 48.89 60.40 75.40 1,164 2,400 7,218 50 64 46 84.58 112.8 Print Done Now complete the payback schedule for Option 2 (purchase) Net Cash Outflows Net Cash Inflows Year Amount Invested Annual Accumulated 0 4,600,000 1 3 4 6 7 8 9 10 (Round your answer to one decimal place.) years The payback for Option 2 (purchase new machine) is (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Ann ilmer Manufacturing, Inc. has a manufacturing machine that needs attention (Click the icon to view additional information) Kilmer expects the following net cash inflows from the two options (Click the icon to view the net cash flows. Kilmer uses straight-line depreciation and requires an annual return of 10% (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity Read the requirements UNE PORN Compute the ARR (accounting rate of return) for each of the options ARR thing % Refurbish Purchase fimmte the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places. X.XX. Use parentheses or a (Click the icon to view Present Value of $ er Manufacturing, Inc. has a manufacturing machine that needs attention Click the icon to view additional information.) er expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) ner uses straight-line depreciation and requires an annual return of 10% Click the icon to view Present Value of (Click the icon to view Future Value of 51 (Click the icon to view Future Value of Ordi Read the requirements ura puyer puu puru w Wowwy -mpute the ARR (accounting rate of return) for each of the options. 11 ARR efurbish % urchase Amount invested % Average amount invested Compute the NF Average annual operating income 1 (refurbish) (Enter the factors to three decimal places. XXXX Use paren or a negative ne Present value of net cash inflows Net Cash PV Factor Present Inflow (-10%) Value Vaars (Click the icon to view Present Value of $1 ta Kilmer Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Kilmer expects the following net cash inflows from the two options (Click the icon to view the net cash flows ) Kilmer uses straight-line depreciation and requires an annual return of 10% Click the icon to view Present Value of Ord (Click the icon to view Future Value of $1 tab (Click the icon to view Future Value of Ordina Read the requirements JUU Compute the ARR (accounting rate of return) for each of the options, ARR De % places. XXXX. Use parent Refurbish Purchase Amount invested Average amount invested Compute the NPV for each of the options. Begin with Option 1 (Average annual operating income for a negative net present value.) Present value of net cash inflows Net Cash PV Factor Present Inflow Years (1 - 10%) Value Present value of each year's inflow 1 (n = 1) 2 (n = 2) 3 4 (n-3) (4) (5) 5 ent value or (Click the icon to view Present Value of View additional information.) Kilmer expects the following net cash inflows from the two options: E (Click the icon to view the net cash flows) Kilmer uses straight-line depreciation and requires an annual return of 10% (Click the icon to view Future Value of $ (Click the icon to view Future Value of O Read the requirements RETUTISTI 10 Purchase % Compute the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places XXXX. Use pa for a negative net present value.) Net Cash PV Factor Present Years Inflow (i - 10%) Value 1 2 3 4 Present value of each year's inflow. (n = 1) (n=2) (n = 3) (n=4) (n = 5) (n = 6) (n+7) (n = 8) Total PV of cash inflows 5 6 7 8 0 Initial investment Net present value of the project Now compute the NPV for Option 2 (purchase). (Enter the factors to three decimal places. XXXX Use parentheses or a minus sign for value.) Net Cash PV Factor Present Value A. li -1094 1 Now compute the NPV for Option 2 (purchase) (Enter the factors to three decimal places. XXXX. Use parentheses or a minus sign for a negative net present value.) Net Cash PV Factor Present Years Inflow (i = 10%) Value Present value of each year's inflow: (n = 1) 2 (n = 2) 3 (n = 3) 4 (n = 4) 5 (n = 5) 6 (n. 6) 7 (n-7) 8 (n = 8) 9 (n-9) 10 (n = 10) Total PV of cash inflows 0 Initial investment Net present value of the project Finally, compute the profitability Index for each option. (Round to two decimal places XXX) tinn Finally, compute the profitability index for each option (Round to two decimal places XXX.) Profitability index Refurbish Purchase . Requirement 2. Which option should Kilmer choose? Why? Review your answers in Requirement 1. Kilmer should choose option, a NPV, and its profitability index is because this option has a payback period, an ARR that is the other Choose from any list or enter any number in the input fields and then continue to the next question 10 (n = 10) Total PV of cash inflows 0 Initial investment Net present value of the project Finally, compute the profitability index for each option. (Round to two decimal places X.XX.) Refurbish Purchase Average amount invested Average annual operating income Requirement 2 Initial investment Review your an Present value of net cash inflows Kilmer should choose option, a NPV, and its profitability index is pay because this option has a Choose from any list or enter any number in the input fields and then continue to the next question. Net present value of the project -mpute the profitability index for each option. (Round to two decimal places XXX.) Profitability index h se Average amount invested Average annual operating income Initial investment Present value of net cash inflows because this option has a payback period, an ARR that is the ament 2. Which option should Kilmer choose? Why? your answers in Requirement 1 should choose . a NPV, and its profitability index is her in the input fields and then continue to the next question the other Requirement 2. Which option should Kilmer choose? Why? Review your answers in Requirement 1 Kilmer should choose because this option has a payback period, an ARR that is option, a VN Option 1. refurbish the current machine Choose from any list Option 2. purchase a new machine n continue to the next question urchase th equirement 2. Which option should Kilmer choose? Why? Eeview your answers in Requirement 1 Kilmer should choose option, a NPV, and its profitability index is because this option has a payback period, an ARR that is longer shorter Choose from any list or enter any number in the input fields and then continue to the 7 Profitability index = IN back period, an ARR that is 7 the other higher than ? on. lower than the same as - Refurbish Purchase Requirement 2. Which option should Kilmer choose? Why? Review your answers in Requirement 1. because Kilmer should choose option, a NPV, and its profitability index is Choose fr ter any number in the input fields and then com negative positive 99 H Initial investment Net present value of the project compute the profitability index for each option. (Round to two decima bish nase Lirement 2. Which option should Kilmer choose? Why? iew your answers in Requirement 1. her should choose because this Lion, a NPV, and its profitability index is oose from any list or enter any number in the inp higher hen conti lower 1 0 0 o M 99