ganor manufacturing inc has a manufacturing machine rhat need attention.

he expects the following net cash inflow from two options.

gaynor uses straight line depreciation and required annual return of 10%

Gaynor Manulactaring, the, bas a manulacturing machine that neds abtention \&Cick the iose fo view Piesere Waue of 3t taske eClek the loon to view adsitonal information.] Caynor expect the folowng net cash inlows from the feo optoons- (Click the icen 60 viw Fe tant cash 6 omis ) (Chick the voe to view Future Value of Dt latie) Gaphor uses etrajghalre deceecition and recheres as arnua retum of 10%. (Cick tee inon io vine Filure Wele of Coinnry Amuly of 31 latie) Feast the ceoumeriset. Data table (Hoond your anser to oxe dremai place) Thie paybock for Optoon 1 iredirtah cumerh imactine) in Gaynor Manifactaring, ins. has a manufacturing machine that needs wltertion. (Cick the icon fo view Present Waluo of 51 table.) (Cick the icen to vien assitenal information.) Gavenor expects the following nat cash inflows trom the two options: fCuck the icon bo view Prasent Vilue of Ondrary Acursly of 51 latin ) [Clok the icon bo vow the net cash flown:] (Cick the icon to view Future Value of 51 tablia.) Gaynot uset staght-tine degrociasion and requires an annual resum of 10% (Clok the icon to view Fuare Waue of Ordinary Arnuly of sit tabin) Read the fegutements (Round your answer to one decimal place). The perback for Option 1 (refurbah eument machine) is yent. Now complete the payback schedule for Option 2 (purchase) (flound your answer to srie decimul place.) Gaynor Manilacherng we tas a maruficturng machife that teeds atteribs. (Click tha icee to vew Preaeni Viales of 5t tatis) WClck the loon on virw asitionil infarmation, Caynor asptes the fofowicg feet cash infowe from the two eotens: (Clok the iash favme frebert Value of Ondrery Awory of st tatia) (cick, me icon io view the net cavh fowi). IClok the igon to viw fuame Vetue if It tatla) Camor uses staightine sopectiofion and mques an mial setum of 90%. The paycack bor Opbon 2 lrurchasa new machine) is Combule t-e ARR iascourting tate of estumy for nach of the cptens. Gsynor expects the folowing net cash anowi trom the two optons: IIIt (Click the ican to view the net cash flowt.) \{Cick the icen bs wew Finare Vidine of 51 table.) Gaynor uses straightielne deprecabon and requires ah annual retum of 10%. (Cick the icon to view Filure Value of Orainary denuaty of St table) Flead the seoulnmonta Gagnor Manutacturing, he, has a manufactunng machine thwa needi mtesion (Clok the icen is view Prebert Waue of St tabint) Gayter nepects the following net cant infowa from the two opbons: (Clok the icon lo view the net caah bown ? (Chek the ieon to view Funure binue of 51 taties Qartor uses stwaghtine depreciation and requires an annual retum of 50t. (Cick the icon is vew Funde Vaiue of Onthary Amaity of 5t thate.) Poad the traumererh: Fialke as-oute the smftatinv index for each cotion. (Round to twe decimal piacen x0.) Requirement 2 Which option should Gaynor choose? Why? Review your anseos in Rocurartant 1. Guynor should choosi becase tis opton hat a paybsck pecod an ARG fut is proftabity index is More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $2,200,000. If refurbished, Gaynor 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. Reference eot $1 tabin 1 be of Orinary Astnoty of 51 ladie.) of 51 tithe af Cramay Annuty of 55 iatie.) cither option, NiN and at Reference eot \$1 luhio1 w of Ordinary knnuty of $1 table] of 51 tatie) of Ordinary Arnuty of 31 bitine? other ogtion. Reference auraf Vivet of 5+ tabie. ure Watur of $1 tatien yut Whi of Onifary kerecy of 51 latin 1 the other option a Reference sect value of 51 tatien ouent Value of Crumary Artiuty of Si table.) Lre Vaive of 71 Hatike 1 sw Walye of Crotnay Annuty ok' St tatile? tho other setion a Gaynor Manulactaring, the, bas a manulacturing machine that neds abtention \&Cick the iose fo view Piesere Waue of 3t taske eClek the loon to view adsitonal information.] Caynor expect the folowng net cash inlows from the feo optoons- (Click the icen 60 viw Fe tant cash 6 omis ) (Chick the voe to view Future Value of Dt latie) Gaphor uses etrajghalre deceecition and recheres as arnua retum of 10%. (Cick tee inon io vine Filure Wele of Coinnry Amuly of 31 latie) Feast the ceoumeriset. Data table (Hoond your anser to oxe dremai place) Thie paybock for Optoon 1 iredirtah cumerh imactine) in Gaynor Manifactaring, ins. has a manufacturing machine that needs wltertion. (Cick the icon fo view Present Waluo of 51 table.) (Cick the icen to vien assitenal information.) Gavenor expects the following nat cash inflows trom the two options: fCuck the icon bo view Prasent Vilue of Ondrary Acursly of 51 latin ) [Clok the icon bo vow the net cash flown:] (Cick the icon to view Future Value of 51 tablia.) Gaynot uset staght-tine degrociasion and requires an annual resum of 10% (Clok the icon to view Fuare Waue of Ordinary Arnuly of sit tabin) Read the fegutements (Round your answer to one decimal place). The perback for Option 1 (refurbah eument machine) is yent. Now complete the payback schedule for Option 2 (purchase) (flound your answer to srie decimul place.) Gaynor Manilacherng we tas a maruficturng machife that teeds atteribs. (Click tha icee to vew Preaeni Viales of 5t tatis) WClck the loon on virw asitionil infarmation, Caynor asptes the fofowicg feet cash infowe from the two eotens: (Clok the iash favme frebert Value of Ondrery Awory of st tatia) (cick, me icon io view the net cavh fowi). IClok the igon to viw fuame Vetue if It tatla) Camor uses staightine sopectiofion and mques an mial setum of 90%. The paycack bor Opbon 2 lrurchasa new machine) is Combule t-e ARR iascourting tate of estumy for nach of the cptens. Gsynor expects the folowing net cash anowi trom the two optons: IIIt (Click the ican to view the net cash flowt.) \{Cick the icen bs wew Finare Vidine of 51 table.) Gaynor uses straightielne deprecabon and requires ah annual retum of 10%. (Cick the icon to view Filure Value of Orainary denuaty of St table) Flead the seoulnmonta Gagnor Manutacturing, he, has a manufactunng machine thwa needi mtesion (Clok the icen is view Prebert Waue of St tabint) Gayter nepects the following net cant infowa from the two opbons: (Clok the icon lo view the net caah bown ? (Chek the ieon to view Funure binue of 51 taties Qartor uses stwaghtine depreciation and requires an annual retum of 50t. (Cick the icon is vew Funde Vaiue of Onthary Amaity of 5t thate.) Poad the traumererh: Fialke as-oute the smftatinv index for each cotion. (Round to twe decimal piacen x0.) Requirement 2 Which option should Gaynor choose? Why? Review your anseos in Rocurartant 1. Guynor should choosi becase tis opton hat a paybsck pecod an ARG fut is proftabity index is More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $2,200,000. If refurbished, Gaynor 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. Reference eot $1 tabin 1 be of Orinary Astnoty of 51 ladie.) of 51 tithe af Cramay Annuty of 55 iatie.) cither option, NiN and at Reference eot \$1 luhio1 w of Ordinary knnuty of $1 table] of 51 tatie) of Ordinary Arnuty of 31 bitine? other ogtion. Reference auraf Vivet of 5+ tabie. ure Watur of $1 tatien yut Whi of Onifary kerecy of 51 latin 1 the other option a Reference sect value of 51 tatien ouent Value of Crumary Artiuty of Si table.) Lre Vaive of 71 Hatike 1 sw Walye of Crotnay Annuty ok' St tatile? tho other setion a