Coston Manufacturing, Ine has a manufacturing machine that needs attention Click the icon to view tomation Colton expects the following net cash inflows from the two options Click the icon to view the net conflow Cohion uses straight-line depreciation and requires an annual rotum of 12% Click the cos to view Press of (Click the son to view Prodiny Anny csak then to view Future Value of a Click the icon to www Future Value of Ordinary of Read the requirements Compute the payback for both options Begin by completing the payback schedule for Option 1 refurbish) Net Cash Outows Not Cash Infos Amount invested Ann Accumulated O 5 1.800.000 Year 2 2 + 5 7 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,800,000. 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 $4,000,000. A new machine would last 10 years and have no residual value. Refurbish Current Machine Purchase New Machine Year Year 1 $ 1,390,000 $ 3,480,000 Year 2 290,000 420,000 Year 3 230,000 360,000 Year 4 170,000 300,000 Year 5 110,000 240,000 Year 6 110,000 240,000 Year 7 110,000 240,000 Year 8 110,000 240,000 Year 9 240,000 240,000 Year 10 $ 2,520,000 $ 6,000,000 Total