Kilmer Manufacturing, Inc. has a manufacturing machine that needs attentio (Click the icon to view additional information.) Kilmer expects the following net cash inflows from the two options: BB: (Click the icon to view the net cash flows.) Kilmer uses straight-line depreciation and requires an annual return of 14%. The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,800,000. If refurbished, Kilmer 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 $3,200,000. A new machine would last 10 years and have no residual value. Data Table - Requirement 1. Compute the payback, the ARR, the NPV, and the profitabi W Compute the payback for both options. Begin by completing the payback sche Net Cash Outflows Net Cash Inflows Refurbish Current Machine Purchase New Machine Year Year Amount Invested Annual Accumulated Year 1 $ 1,680,000 0 $ 1,800,000 Year 2 1 Year 3 2 860,000 640,000 420,000 200,000 Year 4 220,000 $ 800,000 580,000 360,000 140,000 140,000 140,000 140,000 3 Year 5 4 Year 6 200,000 200,000 5 Year 7 6 Year 8 200,000 7 Year 9 200,000 200,000 Year 10 Enter any number in the edit fields and then click Check Answer. $ 2,520,000 $ 4,800,000 Total Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.9430.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 20.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0 694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.609 0 579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.354 0.314 0.279 Period 8 10.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.286 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.5920.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 9.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.073 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.000 0.045 Period 18 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 210.811 0.660 0.538 0.439 0.359 0.294 0.242 Period 22 TORO3647 0522 0422 0342 0278 0226 0.1990.164 0.135 0.093 0.064 0.053 0.044 0.031 0.022 184 150 10 123 0 083 005A 04A Future Value of $1 8% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 7% 9% 10% 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.020 1.0401.061 1.082 1.103 1.1241.145 1.166 1.188 1.210 1.030 1.061 1.093 1.125 1.1581.191 1.225 1.260 1.295 1.331 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.4121.464 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 12% 14% 15% 1.120 1.140 1.150 1.254 1.300 1.323 1.405 1.482 1.521 1.574 1.689 1.749 1.762 1.925 2.011 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 1.072 1.149 1.230 1.316 1.407 1.504 1.606 1.714 1.828 1.949 2.211 2.502 2.660 1.083 1.172 1.267 1.369 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.3582.773 3.252 3.518 1.105 1.219 1.344 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 4.046 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.294 1.469 1.665 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.261 7.076 1.346 1.558 1.801 2.079 2.3972.759 3.172 3.642 4.177 5.474 7.138 8.137 Period 16 Period 17 Period 18 Period 19 Period 20 1.173 1.373 1.605 1.873 2.183 2.540 2.9523.426 3.970 4.5956.130 8.137 9.358 1.184 1.400 1.653 1.948 2.292 2.693 3.159 | 3.700 4.328 5.054 6.866 9.276 10.76 1.196 1.428 1.702 2.026 | 2.407 2.854 3.380 3.9964.717 5.560 7.690 10.58 12.38 1.208 1.457 1.754 2.107 2.527 3.026 3.617 4.316 5.142 6.116 8.613 12.06 14.23 1.220 1.486 1.806 2.1912.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 Period 21 1.232 1246 1.516 1 51 1.860 2.279 2.786 3.400 4.141 1010 9970 2006 900 n 5.034 6.109 7.400 5127 A50 011 10.80 15.67 18.82 121 170 2104 Present Value of Ordinary Annuity of $1 Periods eriod 1 eriod 2 eriod 3 eriod 4 eriod 5 1% 2% 3% 0.990 0.980 0.971 1.970 1.942 1.913 2.9412.884 2.829 3.902 3.808 3.717 4.8534.713 4.580 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.962 0.9520.943 0.935 0.926 0.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.605 1.566 1.528 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.4022.322 2.283 2.246 2.174 2.106 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 eriod 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355. 4.111 3.889 3.784 3.685 3.498 3.326 eriod 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 eriod 8 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.5355.335 4.968 4.6394.487 4.344 4.078 3.837 eriod 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.9955.759 5.328 4.946 4.772 4.607 4.303 4.031 eriod 10 9.471 8.983 8.530 8.111 7.722 | 7.360 7.024 6.710 6.418 6.145 5.6505.216 5.019 4.833 4.494 4.192 eriod 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.4535.234 5.029 4.656 4.327 eriod 12 11.255 10.575 9.954 9.385 | 8.863 8.384 7.943 | 7.536 7.161 | 6.814 | 6.1945.660 5.421 5.197 4.793 4.439 eriod 13 12.134 11.348 10.635 | 9.986 9.394 8.853 8.358 7.904 7.487 7.103 6.424 | 5.8425.583 5.342 4.910 4.533 eriod 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.6286.0025.724 5.468 5.008 4.611 eriod 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 eriod 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.1624.730 eriod 17 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.749 5.222 4.775 eriod 18 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.2017.250 6.467 6.128 5.818 5.273 4.812 eriod 19 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.3657.366 6.550 6.198 5.877 5.316 4.844 eriod 20 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 eriod 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9.292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 eriod 22 19.660 17.658 15.937 14.451 13.163 12.042 11.061 10.2019.442 8.772 7.645 6.743 6.359 6.011 5.410 4.909 Future Value of Ordinary Annuity of $1 1% 2% Periods Period 1 Period 2 Period 3 Period 4 Period 5 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.010 2.020 2030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.1202.140 2.150 3.030 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 4.060 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5.101 5.204 5.309 5.416 5.5265.637 5.7515.8675.985 6.105 6.353 6.610 6.742 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.8026.975 | 7.1537.336 | 7.523 7.716 8.115 8.536 8.754 7.214 7.434 7.6627.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 11.07 8.286 8.583 | 8.8929.214 9.549 | 9.897 10.260 10.64 | 11.03 | 11.44 12.30 13.23 13.73 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.19 15.94 17.55 19.34 20.30 Period 11 Period 12 Period 13 Period 14 Period 15 11.57 12.17 12.8113.49 14.21 14.97 15.78 16.65 | 17.56 18.53 | 20.65 23.04 24.35 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 | 24.52 28.03 32.09 34.35 14.95 | 15.97 17.09 18.2919.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 47.58 Period 16 Period 17 Period 18 Period 19 Period 20 17.26 18.64 20.16 21.8223.66 25.67 27.89 | 30.32 33.00 35.95 42.75 50.98 55.72 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 | 41.30 45.60 55.75 68.39 75.84 20.81 22.84 25.12 27.67 30.54 33.76 37 38 41.45 46 02 51.16 63.44 78.97 88.21 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 Period 21 Period 22 23.24 25.78 28.68 31.97 35.72 39.99 24.47 27.30 30.54 34.25 38.51 43.39 44.87 50.42 56.76 64.00 81.70 104.8 118.8 49.01 55.46 62.87 71.40 92.50 120.4 137.6