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Gubin Masudocturing, Ine tas a manutacturng mactine that needs attontion (Click the icon to wew adationa iniarmulion.) Gipin eipects the following not cash ntows tiom

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Gubin Masudocturing, Ine tas a manutacturng mactine that needs attontion (Click the icon to wew adationa iniarmulion.) Gipin eipects the following not cash ntows tiom the fwo options (Cick the icon fo view Pretent Vatue of 51 table) liclick the kon to ver the net cash flown ) Gicin uses straght ins topeciation and sequres an annust return of 12%. (Click the icon to vew Present Valoe of Ovdinary Annuify of 51 lable) (Clck the icon to viow Future Vasie of 51 hizble) (Click the iches to now Future Value of Ordinary Annaty of $1 table) Requirement 1. Conqute the payback, twe ARR, twe NPV, and the profitabity index of these wo optors More info Compute the paycask tor toth options. Begin by completring the parback schedile foc optoo. 1 ( (eefurtisi)) The company is censidering teo options Opton is to retatioh the carrent machee at a coot of 51,000,000 if meturbeched, Gipperepects fie machne to irst onother eragt years and then hare no tasidial value Optoil 2 as to replace tho misctine af a cost of 54,600,000. A new machine would lint 10 yoas and have no iesdaal valuil ciation and requires an annual return of 12% Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Gilpin choose? Why? Reference Reference Reference Reference Reference Reference Reference Reference Reference Data table

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