Joslin Manufacturing, Inc. has a manufacturing machine that needs (Click the icon to view Present Value of $1 table.) attention. (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity Joslinexpects the following net cash inflows from the two options: of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view the net cash flows.) Joslinuses straight-line depreciation and requires an annual return of 16%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requiroments. More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $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 $1,700,000. A new machine would last 10 years and have no residual value. Data table Reference Reference Reference Reference 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). (Round your answer to one decimal place.) The payback for Option 1 (refurbish current machine) is years. Now comblete the payback schedule for Option 2 (purchase). (Round your answer to one decimal place.) The payback for Option 2 (purchase new machine) is years. Compute the ARR (accounting rate of retum) for each of the options. Compute the NPV for each of the options. Begin with Option 1 (refurbish). (Enter the factors to three decimal places. X.XXX. Use parentheses or a minus sign for a negative net present value.) Now compute the NPV for Option 2 (purchase). (Enter the factors to three decimal places. X.XXX. Use parentheses or a minus sign for a negative net present value.) Finally, compute the profitability index for each option. (Round to two decimal places X.XX.) \begin{tabular}{l|l|l|l|l} & I & +[ & Profitability index \\ Refurbish & +1 & + & = \\ Purchase & & = \end{tabular} 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 other option, a NPV, and its profitability index is