Gaynor manufacturing Inc. has a manufacturing machine that needs attention. Gaynor expects the following net cash inflows from the two options. Gaynor use a straight line deception and requires an annual return of 10%?

Gannor Manufacturng, ine, hat a manulachuning machine that noods attention (Cick tere icon lo view additonal information) (Cick the icon to vow Presert Wilut at bt tacin ) Gaynor eupects the following net cash infows from the two optons: (Clok the icon to vew Preseni Wile of Crdrary Arnaty af th latiof (Cick the ioon to view the net canh flower) (Cick the ican to vew Fifuro Value of 51 tare. ) Gaynor uses straighe.line gecreciation and tequires an antaal pefim of 10%. Read the recurements. Aequirement 1. Combset the paybock, the AYr, ithe NaPV, and the profitabity inder of these two ootonit Compute the payback for both options. Begin by compleing the paytack achestle for Ootion 1 (refuriaby) (Round your answer to one decirual place.) The paytack for Opton 1 (retitish ourent machine) is Now complete the payback schudule for Opoion 2 (puchase). The payback for Cption 1 (refurbish curent machine) is years Now compiete the paytock schedule for Option 2 (purchase). (Round your anser to one decimal place.) The paybsck for Option 2 (purchase new machine) is years. Gaynor usos stralgh-line depreciation and requres an annux retum of 10%. Finally, compute the profiabaty index for each option. (Round to two decimal places XX ) (Cick the icon so vew futire Vivue of th tible) (Click the icon ro view Future Value of Ordinary Arruty of D1 tatien ) Resd the requirertents: Finally, compule the profeabilty index lor each ootion. (Round to two decimal blacke x ) Requirement 2. Which opton should Gaynor choose? Why? Reniew your answers in Reguirmment 1. Garnar should choose profitability 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. ring machine that needs attention. tion.) is from the two options: Data table Ve od Ordinary Anealty of 5 t taple f of $1 tatia) of Ordinary Arinuty er st-fabie.) gther ootiont is Neverinet is Reference edst tacic. an at Orainay Menuey of 51 tabio of 5 ti tatie ) of Ordtrary Arouity of 51 labie other opiont a NPN, and on Reference distutin?s(OritinaryAmalyofIttutio) other cotion, a Reference Reference fient Voloe of 11 thein ) woerit Whet of Crdinary Ampuecy of 55 mitie. are hiblut of 31 labin ? the outher ootion, ] Reference are Watue of \$1 tabea 1 Gaymor Manutacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to waw Present Valie of 51 tatin.) (Click the icon to view additional information.) Gaynor expects the following net cash inflows from the two options: (Cick the icon to vitw Present Vuilun of Ordinary Anninity of st tatie) (Cick the icon to view the net cash flows:) (Cick the icon to view Fiture Value of \$1 tatile) Gaynor uses straight-line deprecintion and requires an annual retum of 10%. (Click the icon to view Future Vyuue of Ontinary Anmuly of 51 tabin ) Read the reauirements