Gilpin Manufacturing, Inc. has a manufacturing machine that needs attention.

View the additional information.

View the net cash flows.

Gilpin Manufacturing. Inc. uses straight$-$line depreciation and requires an annual return of $14\%?$

Read the requirements.

View the Present Value of $$1$ table.

View the Future Value of $$1$ table.

View the Present Value of Ordinary Annuity of $$1$ table.

View the Future Value of Ordinary Annuity of $$1$ table.

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$).$

$\backslash$table$[[$Year$,$Net Cash Outflows,Net Cash Inflows$],[$Amount Invested,Annual,Accumulated$],[0,2,000,000,,],[1,,,],[2,,,$z$],[3,,,],[4,,,],[5,,,],[6,,,],[\backslash$table$[[7,]],,,],[8,,,]]$