P26-32A (similar to) Kimer Manufacturing, Inc. has a manufacturing machine that nedsatton (Click the icon to view additional information Kimer the following cash inflows from the two options (Click the icon to vw the cash flows Kimer uses straight line depreciation and requesanan return of 14 Click the icon to view Present of State (Click the icon to view Present of Any of Ca the con low Future Value of Chok the icon to view Future Value of an Read more Compute the back for both option fegin by completing me payback schedule for Option or Net Cash Outflow Nel Casino Year Anested Anna Acumulated 0 5 1.200.000 + 2 3 Enter any number in the edit folds and then click Check Answer i More Info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. 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 $2,400,000. A new machine would last 10 years and have no residual value Print Done at needs attention Cadeauw Present Value of $1 1 Data Table w Present Value of Ord options w Future Value of $1 tal fal return of 14%. w Future Value of Ordin Refurbish Current Machine Year Purchase New Machine Year 1 $ g the payback schedule for og Year 2 Year 3 lated Year 4 820,000 $ 320,000 260,000 200.000 140.000 140 000 140,000 2.280.000 420.000 360 000 300.000 240.000 240.000 240.000 240.000 Year 5 Year 6 Year 7 Year 8 Year 9 240.000 240.000 Year 10 S 2.180 000 $ 4.800.000 Total Print Done Answer 8 of 8 (3 complete) Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.9900.980 0.971 0.962 0.952 0.9430.935 0.926 0.917 0.909 08930877 0.870 0.862 01847 0.833 Period 2 0.9800.961 0.943 0.925 0.9070.890 0.873 0.8570.8420826 0.797 0.769 0.756 0.743 0.718 0.694 Period 30.971 0.942 0.915 0.8890.864 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 0.9240.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0 636 0.592 0.572 0.552 0516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0 747 0.713 0.681 0.650 06210.567 0.519 0.497 0.4760437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 05640 507 0.456 0.4320-410 0.370 235 Period 7 0.933 0.871 0.813 0.760 0711 0.665 0.6230 583 0.547 | 0.513 0.4520.400 0.376 03540 314 279 Period 8 0.923 0.853 0.7890731 0.677 0.627 0.5820540 0 502 04670404 0 351 0.327 0.305 0.266 0 233 Period 9 0.914 0.8370.766 0.7030 645 0 5920 5440.500 0.460 0424 0.3610 3080 2840 263 0.2250 194 Period 10 0905 0 820 0744 06760.6140558 0.509 0463 0.422 0.3880 322 0.270 0.2470 2270 1971 0.162 Period 11 0896 0.804 0.722 0.6500 5850 527 0.475 0.429 0.3880 350 0.287 0.237 0.215 0 195 072 0.135 Period 12 0887 0.788 0.701 0.625 0 557 0.497 04440397 0.356 0.3190 2570 2080 1870 168 0:13242 Period 13 0879 0773 0.6810601 0 5300 4690 4150368 0.5280 2900 2290 1620 16301450 116 0.093 Period 14 0.8700758 0661 057705050 44203880340 0 2990 2030 2050 16000 125 0.0990078 Period 15 0.861 07430 6420 555 0 481047 0362 0315 0.2760 2390 1830 1400 123 0008 0.084 0.065 Period 16 0.853 0.23 0.623 0534 04580394 03390 2520 25202780 1630.1230 1070093 0.0710054 Period 17 06440740605 05130436 037 037 0270 0 23101198 0.146 0108 0.092 0080 0.00 0.045 Period 18 16.80897000587049404150 3600 2980 2500 2120 1800 130009500830.0690051 0.036 DARAH Dane 8 of 8 (3 complete) Reference Period 13 | 12134|11348710.6359.986 9.394 T8.853 8.3587904 7.487 7.103 6.424 5.8425583 53424910 4533 Period 14 13.004 12 106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.628 6.002 5.7245 468 5008 4.611 Period 15 13.865 12.849 11.938 11.118 10.3809712 9.108 8.559 80617.606 6.811 6.142 5847 5575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.9746 265 5.954 5.669 5.162 4.730 Period 17 15562 14 292 13.166 12 166 11 274 10477 9763 91228544 8.022 7.1206.373 6.047 5749 5.222 4.775 Period 18 16,398 14.992 13.754 1265911.690 10.828 10.059 9.3728.756 8 2017 250 6.467 6.128 5.818 5.2734.812 Period 19 17 226 15.678 14.324 13.13412085 11.15810.336 9.604 8.950 8.3657 366 6.550 6.198 5.877 5316 4.844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470105949 818 9.129 8.514 7 469 6.623 6 259 5929 5353 4.870 Period 21 18.857 17 011 15.415 14.029 12 821 11.764 10.836 10.017 9.292 8.64975626.687 6 312 5 973 5 384 4891 Period 22 19.660 | 17 658 15937 14.451 13.163|12 042 11 061 10 201 9 442 8772 7 645 6.743 6.3596.0115 410 4.909 Period 23 20 456 18 29216 444 14.857 13.48912 303 11.272 10.371 9580 88837.718 679263996044 5432 4925 Period 24 21 24318.914 16.936 15 247 13 799 12 550 11 46910529970789857.784 6 835 6.4346023 5451 4937 Period 25 22 023 195231741315.622 14.094 1278311 654 10.675 9 823907778436.87364646.097 5467 4.948 Period 26 2279520.121 078771598314 37513 003 11.826 10.810 99299 1617 896 6.9064916.118 5.480 4956 Period 27 23 560 20707 18.327 16.33014,64313 211 11.987 10 935 10 027 923779436935 651461385492 4964 Period 28 24 316 2428118.764 1666314.89813406 12 37 11.05110 116 930779846.9616.534 5152535024970 Period 2925066 284419.188 1698454911359112278 17 158 10.1989 37080226.983 6.551 6166 5510 4975 Period 30 25808 22396 1960017292 15372 167652409 11 258 10 274 94278.055 7.003 65666 177 55173979 Period 40 32825 27355 23 11519793 17 159 15.046133321192510757 9 779 8.24471056.642 6233 5.5484997 Period 50 3950 3142425780 21482182561576213807 2238 0962 99158 3047 133 6.061 6 246 55544999 Reference Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1030 1.040 1050 1.000 1.070 1.080 1.090 1.100 1.120 1.140 1150 1020 1.040 1.061 1.0821.103 1.1241.145 1.166 | 1.1881.210 1.254 1.300 1323 1030 1.061 1.093 | 1.125 1.158 1.1911 225 1.260 1.295 1331 1.405 1.482 1521 1.041 1.082 1.126 1.170 1.216 1262 1311 1.360 1.412 1.464 1.574 1689 1.749 1051 1.104 1.159 1.217 1276 1338 1.403 1.469 1539 1611 1.762 1.925 2.011 1.062 1.126 1.194 1.265 1.340 1.4191501 1587 1.677 1.772 1974 2.1952 313 1.072 1.149 1 230 1.316 1.407 1.5041 6061714 1.828 1.949 2211 2.502 2.660 1083 1.1721.267 1.369147715941718 1851 1.99321442476 28533059 1094 1195 1.305 1423 1.551 1689 1.838 1999 2.172235827733 252 3518 1-105121913441 480 1.629 1791 1 967 2 159 2.367 2.594 3.106 3.7074 046 1.116 1 243 1.384 1 539 1710 1.898 2.105 2332 2 580 2.853 327942284652 1.127 1268 1.4261 601 | 1796 2012 2 252 2518 2 813 3.138 3896 4818 5350 1.138 1 294 14891,665 1.886 2133 24102.720 3.0663452 4363 5.492 6 153 11493319 1513 1.732 1.980 2261 257929373 342 3798 4887 62617076 1161 346 15581.801 2 079 2397 2 759 3.172 3642 4.177 5.474 7138137 117313731805 1873 2.183 2540 29523426 3970 4 695 61308 137 9358 7184 1200 1653 19482292 2 698 351593700 4628 5 054 6866 927610 76 * 19642817022026 24072 854 3.38039984717 5560 7690 10.5812 38 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 ERA in Print Done Reference x Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Future Value of Ordinary Annuity of $1 2% 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 2010 2020 2030 2040 2050 2060 2.070 2.080 2.090 2.100 2.120 2140 2 150 3030 3.060 3.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.374 3.440 3 473 4.060 4.122 4.184 4.246 4310 4.375 4.440 4.506 4.573 4.641 4.779 49214993 5.101 5.204 5309 5.416 5.526 5.637 5.751 5 867 5.985 6.105 6.353 6.610 6.742 6.152 6.308 6.468 6.633 6.802 | 6.975 7.1537.336 7.523 7.716 8.115 8.536 8.754 7 214 7.434 76627 898 8.1428 394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8.286 8.583 8 892 9.214 9.549 9897 10.260 10.64 1103 11 44 12 30 13 23 373 9.369 9.755 10.16 10.58 11.03 11.49 1198 12.49 13.02 13.58 14.78 16 09 16.79 10.46 10.95 11,46 1201 1258 13.18 13.82 14.49 15 19 15 94 1755 19.34 20 30 11 57 12.172 81 13 49 14 21 14 97 1578 16.65 1756 18.63 2065 23.04 24 35 12.68 13.4112 19 1503 15.92 16 8717 89 18.98 20 142138 24.1327 27 29.00 13.81 1468 15.62 1663 17.71 18 88 20 14 2150 22 95 24 52 28.03 3209 34 35 14.95 15.97170918.29 19.60 21.02 22 55 24 21 28 02 27 98 32.39 37.58 4050 16 10 17 29 18.60 20.02 2758 23 28 25 13 27.15 2936 3177 3728 43.84 47.58 117 26 18 64 20.16 21.82 23.66 25.67 27 89 30 32 33 00 3595 42.75 50.98 5572 118.49 20.01 2076 23.70 25.84 2821 30 84 33.75 3697 4054 48 88 59.12 6508 19.61 21.41 23 41 2565 28.133091 3400 37.45 41 30 45 60 55 75 68 397584 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 BA Reference Period 13 13.81 14.68 15.62 1663 17.71 18.88 20.14 21.50 22.95 24.52 28.03 3209 34 35 Period 14 14.95 15.97 17.09 18.29 | 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 Period 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 29.36 31.77 37.28 43.84 4758 Period 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 Period 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 6508 Period 18 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 Period 19 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 Period 20 22.02 24.30 26.87 29.7833.07 36.79 41.00 4576 51 16 5728 72 05 91.02 1024 Period 21 23 24 25.78 28.68 31.9735.72 39.9944.87 50.42 56.76 64.00 81.70 | 104.8 118.8 Period 22 24.47 27 30 30.54 34.25 38.51 43.39 49.01 5546 62 87 71.40 92.50 120.4 1376 Period 23 25.72 28.85 32.45 36.62 41 43 4700 53 44 60 89 69.53 79.54 1046 138.3 159 3 Period 24 26.97 30.42 34 43 39.08 44 50 50.82 58.18 66 76 76 79 88,50 182 158.71842 Period 25 28.24 32.03 36.46 41.65 47 73 54 86 63 25 73.1184 70 98 35 133 3 181.92128 Period 26 29 53 33.67 38.55 44 31 51.11 59.16 68 68 79.95 93 32 109 21503 208 3 2457 Period 27 30 82 35 34 40.71 47 08 54 67 63 71 74 48 87.35 10271211 169.4 2385 283 6 Period 28 32 1337.05 42.93 49 97 58.4068 53 80 70 95 34130134 2190.7 27293271 Period 29 33.45 38.79 45 22 52.97 62 3273 64 87 35 104012411486 2146 312 1 377 2 Period 30 3478 40.57 47 58 5608 66 44 79.06.94446 1133 136 3 164 52413356 8 434 7 Period 40 48.89 60 40 75 40 95.00 120.8 154 8 199 6 259.1 3379 442676711342 1779 Period 50 164 48 3258 11281527 2093 290.3 408.5 573 8 8151 1164 2.400 49957 218 Read the requirements. Requirements - X 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Kilmer choose? Why? Print Done