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Data table Refurbish Current Machine Purchase New Machine Year Year 1 $ 2,060,000 $ 3,600,000 Year 2 440,000 500,000 Year 3 340,000 400,000 Year 4

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Data table Refurbish Current Machine Purchase New Machine Year Year 1 $ 2,060,000 $ 3,600,000 Year 2 440,000 500,000 Year 3 340,000 400,000 Year 4 240,000 300,000 Year 5 140,000 200,000 Year 6 140,000 200,000 Year 7 140,000 200.000 Year 8 140,000 200,000 Year 9 200,000 200,000 Year 10 $ 3,640,000 $ 6,000,000 Total Mandel Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Mandel expects the following net cash inflows from the two options: |(Click the icon to view the net cash flows.) Mandel uses straight-line depreciation and requires an annual return of 10%. Rea 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 Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 2,600,000 1 2 3 4 5 5 6 7 8 Data table Refurbish Current Machine Purchase New Machine Year Year 1 $ 2,060,000 $ 3,600,000 Year 2 440,000 500,000 Year 3 340,000 400,000 Year 4 240,000 300,000 Year 5 140,000 200,000 Year 6 140,000 200,000 Year 7 140,000 200.000 Year 8 140,000 200,000 Year 9 200,000 200,000 Year 10 $ 3,640,000 $ 6,000,000 Total Mandel Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Mandel expects the following net cash inflows from the two options: |(Click the icon to view the net cash flows.) Mandel uses straight-line depreciation and requires an annual return of 10%. Rea 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 Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 2,600,000 1 2 3 4 5 5 6 7 8

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