Joslin Manufacturing, Inc, has a manufacturing machine that needs attention. I (Click the icon to view additional information.') Joslin expects the following net casin inflows from the two options: (Click the icon to vew the net cash flows.) Joslin uses straight-line depreciation and requires an annual retum of 12%. 1. Compute the paybacx, the ARR, the NPV, and the profitabity index of these two cotions. 2. Which option should Joslin choose? Why? Recquirement 1. Compute the payback, the ARR, the NPV, and the profitability index of these two optons. Compute the payback for both options. Begin by completing the payback schadule for Option 1 (refurbish). Data table The eompany is consirkering twa eplions. Option 1 is to refurbish the current machine at a cost or $1,100,000. If refurbished, Joslin 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 $1,800,000. A new machine would last 10 years and have no (Round your Enswer to one decimal place.) The payback for Oplion 1 (refurbish current machine) is _years. Now complete the peyback schedule for Option 2 (purchase). he payback for Option 1 (refurbish current machine) is years. Round your answer to one decimal place.) he payback for Option 2 (purchase new machine) is years. Joslin Manufacturing. Inc. has a manufacturing machine that needs attention. (Click the icon to view Present Value of S1 table.) (Click the icon to view additional information.) Joslin expects the following net cash inflows from the two options: ( Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Joslin uses straight-line depreciation and requires an annual retum of 12%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. The payback for Option 2 (purchase new machine) is years. Compute the ARR (accounting rate of retum) for each of the options. Joslin Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view Present Value of $1 table.) (Click the icon to view additional information.) Joslin expects the following net cash inflows from the two options: ( Click the icon to view Present Value of Ordinary Annuity of $ (Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Joslin uses straight-line depreciation and requires an annual retum of 12%. (Click the icon to view Future Value of Ordinary Annuity of $1 Read the requirements. Joslin Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Joslin expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Joslin uses straight-line depreciation and requires an annual return of 12%. Joslin Manufacturing, Inc, has a manufacturing machine that needs attention. (Click the icon to view Present Value of $1 table.) (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Joslin expects the following net cash inflows from the two options: (Click the loon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Joslin uses straight-line depreciation and requires an annual return of 12%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the Finally, compute the profitability index for each option. (Round to two decimal places X.X.) Refurbish Requirement 2. Which option should Joslin choose? Why? Review your answers in Requirement 1. Joslin should choose b I, an ARR that is the other option, a NPV, and its profitability index is Joslin Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view Present Value of $1 table.) (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Joslin expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) (Click the icon to view Future Value of S1 table.) Joslin uses straight-line depreciation and requires an annual return of 12%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. Finally, compute the profitability index for each option. (Round to two decimal places X.XX. .) Requirement 2. Which option should Joslin choose? Why? Review your answers in Requirement 1. Joslin should choose because this option has a payback period, an ARR that is the other option, a NPV, and its profitability index is Present Value of $1 Print Done Present Value of Ordinary Annuity of $1 Future Value of $1 Future Value of Ordinary Annuity of \$1
