Gipin Martlacturng, inc has a manudschuring machine that needs akention (Click the icon to viow additional information) (Cick the icon to vew Present Vaive of \$1 table) Gipin expects the following net cash inflows from the twe optons (Click the icon to view the net cash flows) (Click the icon to vew Present Value of Ordinary Amuity of $1 table.) Gipin usas straghtline depreciason and requites an anfual retum of 14% (Cisk the icon lo vied Fulure Value of $f table.) (CCick the icon to vew Fulture Valus of Ordinary Ansuity of s1 table) Read the roquirements Requiremert 1. Compute the paytack, the ARR, the NPP, and the proftabiity index of these two ogtons Compuse the puybuck for both optons Begin by compieting the partack schedvio for Optisn 1 (refurtish) (Poind your answer to ene decimal piece) More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $900,000. If refurbished, Gilpin 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 $2,100,000. A new machine would last 10 years and have no residual value. Data table Reference Reference Reference Reference Futura Valua af Ordinan nnuith af $1 The payback for Option 1 (refurbish current machine) is years. Now complete the payback schedule for Option 2 (purchase). (Kound your answer to one decimal place.) The payback for Option 2 (purchase new machine) is years. Compute the ARR (accounting rate of return) for each of the options. Net present value of the project Now compute the NPV for Option 2 (purchase). (Enter the factors to three decimal places. X.XXX. Use parentheses or a minu Years12345678910Presentvalueofeachyearsinflow:(n=1)(n=2)(n=3)(n=4)(n=5)(n=6)(n=7)(n=8)(n=9)(n=10) Finally, compute the profitability index for each option. (Round to two decimal places X. XX.) Requirement 2. Which coton should Gipin choose? Why? Review your answert in Requiremont 1 Gipin should choose becasie this eption has a profiabity indes is payback period, an ARA ithat is the other agtion a Apy and ice