Gaynor manufacturing Inc. has a manufacturing machine that needs attention gain or expects the following net cash inflows from the two options gainer uses straight line depreciation and requires an annual return of 10%.

Gaynor Manulacturing. Ine. has a manutacturing mochine that heeds attention Filynar expects the following net eath intiows thom the lwo option IIA IClick me iconto verw the net cath fown:? (Cliok the icen to view Futurn Watien of St tabied Goynorises straght lere degreciaicon and rechires an annual retian ol tow Reod the lpountrenti. RGich ifie icon io vew Presant Value of if aikie) Mokek the icon he vew futare Molue of 71 lation ) (Fick the iont to virw adbional informinion. Giynot upocts tee foluwimg net casb intown fromt the two oolises (Cick tha igon to vew the net can Fones) ceish the icon to ymu Fumen virie of St tation I Hesd the modienista Geyoer Nanutictuncy, the, hat a mamsaghurno machine thad needi intention [i]t (Crok the ioon til whw the not cuet fows.) (Click the ioon to view flame haked of If takie ) (Clokime ion Je Mew firine valia of 31 nitie) fiead the bidremeriti. 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. uring machine that needs attention. ation.) from the two options: Data table lie of Ontinary Ammati of Is tatiai) of 5 tiacia i of Confing Aeyuty sist late. it of Oritinary Minuty od 54 mokes of 1 t eatiei.) of Genfinty Annuty of 51 abie I dither hotwin. a fre of Crituany Atruty if fi natat? rots rapie be of Ontriay Aemcity of th eitie: 11 iasild) ivoedhacyannud of st intie. yre Navee of 11 tatio.d we value of oribiayy Annuty at st Getin I ient Vilie of 51 taole ? ure Watio of ff hated went Vube it Onthary Annmuny of ft nint. jart Vatue of \$f habin? yate Valua of It tatin! Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Gaynor choose? Why? Gaynor Manulacturing. Ine. has a manutacturing mochine that heeds attention Filynar expects the following net eath intiows thom the lwo option IIA IClick me iconto verw the net cath fown:? (Cliok the icen to view Futurn Watien of St tabied Goynorises straght lere degreciaicon and rechires an annual retian ol tow Reod the lpountrenti. RGich ifie icon io vew Presant Value of if aikie) Mokek the icon he vew futare Molue of 71 lation ) (Fick the iont to virw adbional informinion. Giynot upocts tee foluwimg net casb intown fromt the two oolises (Cick tha igon to vew the net can Fones) ceish the icon to ymu Fumen virie of St tation I Hesd the modienista Geyoer Nanutictuncy, the, hat a mamsaghurno machine thad needi intention [i]t (Crok the ioon til whw the not cuet fows.) (Click the ioon to view flame haked of If takie ) (Clokime ion Je Mew firine valia of 31 nitie) fiead the bidremeriti. 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. uring machine that needs attention. ation.) from the two options: Data table lie of Ontinary Ammati of Is tatiai) of 5 tiacia i of Confing Aeyuty sist late. it of Oritinary Minuty od 54 mokes of 1 t eatiei.) of Genfinty Annuty of 51 abie I dither hotwin. a fre of Crituany Atruty if fi natat? rots rapie be of Ontriay Aemcity of th eitie: 11 iasild) ivoedhacyannud of st intie. yre Navee of 11 tatio.d we value of oribiayy Annuty at st Getin I ient Vilie of 51 taole ? ure Watio of ff hated went Vube it Onthary Annmuny of ft nint. jart Vatue of \$f habin? yate Valua of It tatin! Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Gaynor choose? Why