Colston Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Colston expects the following net cash inflows from the two options: E (Click the icon to view the net cash flows) Colston uses straight-line depreciation and requires an annual return of 16%. Requirement 1. Compute the payback, the ARR, the NPV, and the profitability in Compute the payback for both options. Begin by completing the payback schedule Net Cash Outflows Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 1,300,000 1 250,000 250,000 2 3 4 -770,000 550,000 330,000 110,000 110,000 110,000 110,000 6 7 8 ofitability index of these two options. ack schedule for Option 1 (refurbish). - More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. If refurbished, Colston 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 $2,400,000. A new machine would last 10 years and have no residual value. Print Done NON C Colston Manufacturing, Inc. has a manufacturing machine that needs attentior (Click the icon to view additional information.) Colston expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Colston uses straight-line depreciation and requires an annual return of 16%. Year Amount Invested Annual Accumulated O $ 2,400,000 More 1 1,680,000 2 860,000 3 640,000 3 4. 5 6 The cc machir last and machin residual 420,000 200,000 200,000 5 CO 7 200,000 8 9 200,000 200,000 200,000 10 (Round your answer to one decimal place.) The navback for Ontion 2 (nurchase new machine is VAATA 28 Data table - Refurbish Current Machine Year Purchase New Machine Year 1 $ 250,000 $ 1,680,000 Year 2 770,000 860,000 Year 3 550,000 640,000 Year 4 330,000 420,000 Year 5 110,000 200,000 Year 6 200,000 110,000 110,000 Year 7 Year 8 110,000 200,000 200,000 200,000 200,000 Year 9 Year 10 $ 2,340,000 $ 4,800,000 Total Print Done