Hazen Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Hazen expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Hazen uses straight-line depreciation and requires an annual return of 14%. 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). Net Cash Outflows Data table Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 2,600,000 13000000 2 3 720000 540000 360000 180000 180000 7 8 180000 180000 (Round your answer to one decimal place.) The payback for Option 1 (refurbish current machine) is Now complete the payback schedule for Option 2 (purchase). Net Cash Outflows Year Amount Invested Net Cash Inflows Annual Accumulated years. (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Refurbish Current Year Machine Purchase New Machine Year 1 $ 1,300,000 $ 3,570,000 Year 2 720,000 790,000 Year 3 540,000 610,000 Year 4 360,000 430,000 Year 5 180,000 250,000 Year 6 180,000 250,000 Year 7 180,000 250,000 Year 8 180,000 250,000 Year 9 250,000 250,000 Year 10 $ 3,640,000 $ 6,900,000 Total Print Done More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $2,600,000. If refurbished, Hazen 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. Print Done