please answer both part one and part two. Please make sure the answer is not cut off. People keep answering this question and cutting it off. please help thank you.
part 1-
part 2-
- More info Data table Year The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. 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 $4,000,000. A new machine would last 10 years and have no residual value Year 1 Year 2 Year 3 Refurbish Current Machine $ 100,000 $ 440,000 340,000 240,000 140,000 140,000 140,000 140,000 Year 4 Year 5 Done Print Purchase New Machine 3,150,000 550,000 450,000 350,000 250.000 250,000 250,000 250,000 250,000 250,000 6,000,000 Year 6 Year 7 Year & Year 9 4 Year 10 5 5 1,680,000 $ Total 6 ad Reference se ts he stre 7% N nt e pl Net Present Value of SI Periods 194 2% 3% 5% 6% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.93 0.926 0.917 0.9090.893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0961 0.943 0.925 0.907 0.890 0.873 0.8570.8420.826 0.797 0.769 0.756 0.7430.7180.694 Period 3 0.971 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 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.9160482 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 0.4760437 0.402 Period 6 10 942 0.888 0.837 0.790 0.746 0.705 0.6660.630 0.596 0.564 0.507 0.456 0432 0.410 0.370 0.335 Period 7 0,933 0.871 0.813 0.7600.7110.665 0.623 0.583 0.547 0.513 0.452 0.400 0.376 0.3540.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.4040.351 0.327 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0.820 0.7440.6760,614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.1910.162 Period 110,896 0.8040.722 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 120.887 0.788 0.701 0.625 0.557 0.497 0.4440.397 0.356 0.319 0.257 0.208 0.187 0.1680.137 0.112 Period 130.879 0.7730.681 0.601 0.530 0.469 0.415 0.368 0.3260.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 140.870 0.7580.661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.1600.141 0.125 0.099 0,078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.1400.123 0.108 0.084 0.065 Period 160.853 0.7280.623 0.534 0.458 0.394 0.3390.292 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 0.2310.198 0.146 0.108 0.093 0.080 | 0.060 0.045 Period 18 0.836 0.7000.587 0.494 0.416 0.350 | 0.296 0.250 0.212 0.1800.130 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 2010,820 0.6730.554 0.456 0.3770,3120.2580.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 An - x Reference $1 table fad he cts he strid table int Nel Period 110.89610 8040.72210650 0.585 0.527 0.475 0.429 10:3880350 0.287 10.237 0.215 0.1950 162 0.135 Period 120.887 0.788 0.701 0.625 0.557 0.4970444 0.3970356 0319 0.257 0.208 0.187 0.1680.1370.112 Period 130.879 0.773 0.681 0.601 0.5300 4690.415 0.368 0.3260.290 0.229 0.1820.163 0.145 0.116 0.093 Period 140.870 0.758 0661 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.205 0.1600.141 0.125 0.099 0.078 Period 15 0.861 0.74306420.5550.481 0.417 0.362 0315 0.275 0.239 0.183 0.1400.123 0.108 0.0840.065 Period 160.853 0.7280.623 0.3340.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.1070.093 0.071 0.054 Period 170.844 0.714 0.005 0.313 0.4360371 03170.270 0.211 0.19% 0.146 0108 0.093 0.080 0.060 | 0.045 Period 180.830 0.7000.587 0.494 0.416 0.330 0.296 0.250 0.212 0.18 0.130 0.095 0.081 0.0690.051 0.038 Period 190,828 0.686 0.570 0.475 0.3960.331 0.277 0.232 0.1940.164 0.116 0.083 0.070 | 0.060 0,043 0,031 Period 200.820 0.673 0.3540456 0.3770312 0.250.215 0.17 0.149 0.1040.073 0,061 0.051 0.097 0.026 Period 210.8110660 0.538 0.439 0.359 0.2940.242 0.1990.1640.135 0.093 0,064 0.053 0.0440031 0.022 Period 22 0.803 0.647 0.52210.422 0.342 0.22 0.226 0.184 0.150 0.123 0.03 0.056 0.046 0.038 0.026 0,018 Period 230.795 0.6340.507 0.4060.3260.262 0.211 0:170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 10.7880.622 0.492 0.3900 3100.247 0.197 0.15 0.126 0.1020.066 0.043 0.035 0.028 0.019 0.013 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0,184 0:146 0.116 0.092 0.059 0,038 0.030 0.024 0.0160010 Period 26 0.772 0.598 0.46403610281 0.220 0.172 0.135 0.106 0.084 0.053 0,033 0.026 0.021 0.014 0.009 Period 27 10.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0,047 0.02900230.0180.0110.007 Period 28 0.757 0.574 0.437 0.333 0.255 0.1960.150 0.116 0,090 0.069 0.042 0.026 0.0200.0160.0100.006 Period 29 0.7490.563 0.424 0.321 0.243 0.185 0.141 0.1070 0820,063 0,037 0.022 0.0170.014 0.008 0.005 Period 30 0.742 0.5520.412 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.033 0.020 0,015 0,012 0.007 0.004 Period 40 0.672 0.453 0.307 0.2080.142 0.097 0.067 0.046 0.032 0,022 0.0110.005 0.0040.003 0.001 0.001 Period 500.608 0.372 0.228 0.141 0.087 0.0540034 0.021 0.013 0,009 0.003 0.001 0.001 0.001 An Reference - Present Value of Ordinary Annuity of SI Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0,862 0.847 0.833 Period 2 1.970 1.942 1913 1.886 1.8591.8331.8081.7831.759 1.736 1.6901.647 1.626 1.6051.566 1.528 Period 3 2.9412.884 2.8292.775 2.723 2.673 2.624 2.577 2.531 2.487 2402 2.322 2.283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 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 Periods 4.853 4.713 4.580 4.452 4.3294212 4.100 3.993 3.890 3.7913.605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.076/4.917 4.767 4.6234.4864.355 4.111 3.8893.7843,685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 3.7865.582 5.389 5.206 3.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 Period 8 7.652 7.3257.020 6.733 6,463 6.210 5.9715.7475.53 5.335 4.968 4.6394.4874.344 4.0783.837 Period 98.5668.1627.786 7435 7.108 16.802 6.515 6.247 5.9955.759 5.32849464.7724.60743034.031 Period 10 9.4718.983 | 8.530 8.111 | 7.7227.360 7.0246.710 6.418 61453.6505.216 5.019 4.8334,494 4.192 Period 11 10.368 9.787 9.2538.760 8,3067.887 7.499 7.139 6.805 6,495 5938 5,453 5.234 5.029 4.656 4.327 Period 12 11.255 10,575 9.954 9.3858.863 8.384 79437.536 | 7.161 | 6.814 6.1945.660 5.4215.197 4.793 4.439 Period 13 12.134 11.348 10.6359.9869.3948.8538.3587.904 7.487 7.10364245.8425.583 5.342 4910 4533 Period 1413.00412.106 11,296 10.5639.899 9.2958.745 8.2447.786 7.3676.6286.002 5.7245.4685.0084611 Period 15 13.865 12.849|11.93811.118 [103809.712 9.1088.559 18.061 7.606 6.811 6.1425.8475.575 5.092 4.675 Period 16 14.718 13.57812.561 11.65210.838|10.106 9.4478.8518,313 7.8246.9746.265 5.9545.669 5.1624.730 Period 17 15.562 14.292 13.166 12.166.11.27410.4771 9.763 9.1228.544 8.022 7.1206, 373 6.047 5.7495.222 4.775 Period 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 5.2734.812 Period 19 17.226 15.678 14,32413.134.12.08 11.15810.336 9.604 8.950 8.365 7.366 6.5506.1985.8775.3164.844 Period 20 18.046 16.351 14.877 13.590|12.462|11.470 10.5949.818 9.129 8.5147.469 6.623 6.259 5.9295.353 4.870 Reference Period II 10.368 9.7879.253 8.760 8.3067.8877499 7.139 6.8056,495 5938 5.4535.234 3.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 79437.536 | 7.1616.814 6.194 5.660 5.4215.197 4.7934439 Period 13 12.134 11.348|10.635 9.986 9.3948.853 8 358 7.904 7.487 7.103 6.424 5.8425,583 5.342 | 4.910 4.533 Period 14 13.00412.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6,6286.0025.724 5.468 3.008 4.611 Period 15 13.86512.849 11.938 11.11810.3809712 9.108 8.5598.061 7.606 6.811 6.142 5.8475.575 5.092 4.675 Period 16 (14.718/13.578 12.561 11.65210.838|10.100 9.447 8.851 8.313 7.824 6.9746.265 5.9545.669 5.1624.730 Period 17 15.562 14.292 13.166 12.166.11.27410.477 9.763 9.122 8.5448.022 7.1206.373 6.047 5.749 5.222 4.775 Period 18 16.398|14.992 13.754 12.659|11.690110.828 10.059 9.372 8.756 8.2017.250 6.467 6.128 5.818 5.2734.812 Period 19 17.226 15.678|14.32413.134|12.08511.15810.336 9.604 8.950 8.3657.366 | 6.550 6.1983.8775.316 4.844 Period 20 18.04616,351|14.877|13.390 12.462|11.470 10.5949.818 9.129 8.51474696.623 6.259 5.929 5.353 4.870 Period 21 18.85717.01115.415 14.02912.821|11.76410.836 10.01719.292 8649 7.5626.687 6,312 5.973 5.384 4.891 Period 22 19.660 17.658|15.937|14.451 13.163|12.042 11.061 10.2011 9.442 8.772 | 7.645 6.743 6,359 | 60115410 4.909 Period 23 20.45618.292 16,44414857113.489|12.303 11.272|10.371 9.5808.883 7.718 6.792 6.399 6,044 5.432 4.925 Period 24 21.24318.914| 16.93615.247|13.799|12.550 11.469|10.529 9.707 8.9857.7846.835 6.4346.073 5.451 4.937 Period 25 22.023 19.52317.41315.62214,09412.783 11.654 10.675 9.8239.077 7.8436.873 6.4646,097 5.467 4.948 Period 26 22.795 20.121|17.87715.98314.375|13.00311.826 10.81019.929 9.1617.8966.906 6.491 6.118 5.480 4.956 Period 27 23.560 20.707 18.32716,330|14,643|13.211|11.987|10.935|10.027 9.237 7.943 6.935 6.514 6.1365492 4.964 Period 28 24 316 21.28118.76416663 14.898|13.406 12.13711.0110.116 9.3077.984 6.961 6,534 6.1525.5024970 Period 29 25 066 21.844|19.18816,984|15.141|13.591|12.278 11.158/10.1989 370 8.022 6.983 6551 6.1665.510 4.975 Period 30 25.80822.396 19.600|17.292|15.372 13.765 12.409 11.258|10.274 94278.053 7.003 6.566 6.1775.517 4.979 Period 40 32.83527355|23.115 19.793 17.159|15.040 13.332|11.925/10.757 9.779 | 8.244 7.105 6.642 6.233 5.548 4.997 Period 50 39.19631.424/25.73021.48218,256|15.762 13.801 12 233|10.962 9.915 8.304 7.133 6,661 | 6.2465.5544.999 Reference ity o Future Value of Si y of Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.010 1.020 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.020 1.040 1.061 1.0821.103 1.124 1.145 1.166 1.1881.210 1.254 1.300 1.323 1.030 1.061 1.093 1.125 1.1581.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 1.041 1.0821.126 1.170 | 1.216 1.2621.311 1.360 1.4121.464 1.574 1.689 1.749 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.6771.772 1.974 2.1952.313 1.072 1.149 1.230 1.316 1.407 1.5041.606 1.7141.828 1.949 2.211 2.502 2.660 1.083 1.1721.267 1.369 1.4771.594 1.718 1.851 1.993 2.144 2.476 2.8533059 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 1.6291.7911.967 2.159 2.367 2.594 3.106 3.707 4.046 1.116 1.243 1.3841.539 1.7101.898 2.105 2.3322.580 2.853 3.479 4.2264.652 1.1271.268 1.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.1381.2941.469 1.665 1.886 2.1332.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.513 1.732 1.980 2.261 2.579 2.937 3.342 3.798 4.887 6.2617.076 1.161 1.346 1.558 1.8012.079 2.3972.759 3.1723.642 4.177 5.474 7.1388.137 1.1731.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 1.184 1.400 1.653 1.948 2.292 2.6933.1593.700 4.328 5.054 6,866 9.276 10.76 1.196 1.428 1.702 2.026 | 2.4072.8543.380 3.996 4.717 5.5607.690 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 1.4861.806 2.1912.653 3.207 3.870 4.6615,604 6.727 9.646 13.74 16.37 - Reference uit Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 1.116 1.243 1.384 1.539 1.7101.898 2.105 2.332 2.580 2.8533.479 4.226 4,652 1.1271.2681.426 1.601 1.796 2.012 2.252 2.518 2.8133.138 3.896 4.818 5.350 1.1381.2941.469 1.665 1.886 2.1332.410 2.720 3.066 3.452 4.363 5.492 6.153 1.149 1.319 1.313 1.732 1.980 2.261 2.579 2.937 3.3423.798 4.887 6.261 7,076 1.1611.346 1.558 1.801 2.079 2.3972.759 3.1723.642 4.177 5.474 | 7.1388.137 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.1379.358 1.1841.400 1.653 1.948 2.292 2.6933.159 3.700 4.328 5.0546.866 9.276 10.76 1.1961.428 1.702 2.0262.407 2.854 3.380 3.996 4.717 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 1.4861.806 2.191 2.653 3.2073.870 4.6615.604 6.727 9.646 13.74 16,37 1.232 1.516 1.860 2.279 2.786 3.40041415.034 6.1097.400 10.80 15.67 18.82 1.245 1.546 1.916 2.370 2.925 3.604 4.430 5.4376,659 8.140 | 12.10 17.86 21.64 1.2571.577 1.9742.465 3,0723.820 4.741 5.8717.258 8.954 13.55 20.36 24.89 1.270 1.608 2.0332.563 3.225 4.049 5.0726.341 79119.850 15.18 23.2128,63 1.282 1.641 2,094 2.666 3.386 4.292 5.427 6.848 8.623 10.83 17.00 26.4632.92 1.295 1.673 2.1572.772 3.556 4.5495.8077.3969.399 11.92 19.04 30,17 37.86 1.308 1.707 2.2212.883 3.7334.822 62147,988 10.25 13.11 21.32 34.39 43.54 1.321 1.741 2.288 2.999 3.920 5.112 6.649 8.627 11.17 14.42 23.88 39.20 50.07 1.335 1.776 2.357 3.119 4.1165.418 7.1149.317 12.17 15.86 26.75 44.69 57.58 1.3481.811 2.427 3.243 4.3225.743 7.612 10.06 13.27 17.45 29.96 $0.95 66.21 1.489 2.208 3.262 4.801 7.040 10.29 14.97 21.72 31.41 452693.05 188.9267.9 1.6452.692 4.384 7.107 11.4718.42 29.46 | 46.90 74.36 | 117.4289.0 700.21,084 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 Period 50 Reference hin Future Value of Ordinary Annuity of SI Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% Period 1 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 Period 2 2.010 2020 2030 2040 2050 2060 2.070 2.080 2,090 2.100 2.120 2.140 2.150 Period 3 3.0303.0603.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.374 3.440 3.473 Period 4 4,0604.122 4.1844.2464.310 4.375 4.440 4.5064.573 4.641 4.7794.921 4.993 Period 5 5.101 5.2045.3095.416 5.526 5.637 5.751 | 5.8675.985 6.105 6.353 6.610 6.742 Period 6 6.152 6.308 6.468 6,633 6.802 6.9757.1537.3367.523 7.716 8.115 8.536 8.754 Period 7 7.214 7.4347.662 7.8988.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Period 8 8.286 8.5838.8929.2149.549 9.897 10.260 10.64 | 11.03 | 11.44 12.30 13.23 13.73 Period 9 9.369 9.755 10.16 10.58 | 11.03 | 11.49 11.98 12.49 13.02 13.5814.78 16.09 16.79 Period 10 10.46 10.95 11.46 12.01 12.58 13.18 13.82 14.49 15.1915.94 | 17.55 | 19.34 20.30 Period 11 11.57 12.17 12.81 | 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 Period 12 12.68 13.4114.19 15.03 15.92 16.87 17.89 18.98 20.14 21.3824.13 27.2729.00 Period 13 13.8114,681562 16.63 17.7118.88 20.14 21.50 22.95 24.52 28.03 | 32.09 34.35 Period 14 14.95 | 15.97 17.0918.29 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 29.3631.77 37.28 43.84 | 47.58 Period 16 | 17.2618.64 20.16 21.82 23.66 25.67 27.89 30.3233.00 35.95 42.75 50.98 55.72 Period 17 18.43 20.01|21.7623.70 25.84 28.21 30.84 33.75 36.97 40.54 48.8859.12 65.08 Period 18 19.61 21.41|23.4125,6528.13 30.91 34,00 37.45 41.3045.60 55.75 | 68.39 75.84 Period 19 20.81 22.8425.12 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 45.76 51.16572872.05 91.02 | 102.4 Reference Period 11 11.57 12.17|12.8113.49 14.21 14.9715.78 16,65 17.56 18.53 20.65 23.04 24.35 Period 12 12.68 13.41 14.1915.03 15.92 16.87 17.8918.98 20.14 21.3824.13 27.2729.00 Period 13 13.81 14.68 15.62 16.63 17.71 | 18.88 20.14 21.50 22.95 24.52 28.03 32.0934.35 Period 14 14.95 | 15.97 17.0918.29 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 29.3631.77 37.2843.8447.58 Period 16 17.2618.64 20.16 21.8223.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 Period 17 18.43 20.0121.7623.70 25.84 28.21 30.84 33.75 36.97 40.5448.88 59.12 65.08 Period 18 19.61 21.4123.41 25.6528.13 30.9134.00 37.4541.30 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 45.76 51.16 57.28 | 72.05 91.02 102.4 Period 21 23 24 25.7828.68 31.9735.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 Period 22 24.47 27.30 30.5434.25 38.51 43.39 | 49.01 55.4662.87 71.40 92.50 120.4 137.6 Period 23 25.72 28.8532.45 36.62 41.43 | 47,00 53.44 | 60.89 | 69.53 79.54 104.6138.3 159.3 Period 24 26.97 30.42 34.4339.08 44.50 50.82 58.18 66.7676.79 88.50 118.2158.7184.2 Period 25 28.24 32.03 36.46|41.65 47.73 54.86 63.25 73.11 84.70 98.35133.3 181.9212.8 Period 26 29.53 33.6738.5544.3151.11 59.1668.68 79.95 93.32 109.2 150.3 2083 245.7 Period 27 30.82 35.3440.7147.08 54,67 63.71 74.4887.35 102.7 121.1 169.4238.5 283.6 Period 28 32.13 37.05 42.93 49.97 58.40 68,5380.70 95.34 113.0 134.2 190.7 272.9 327.1 Period 29 33.45 38.79 45.22 52.97 62.32 73.6487.35 104.0 124,1 148.6 214.6 312.13772 Period 30 34.78 40.57 47.5856.08 66.44 79.06 94.46 113.3 136,3 164.5 2413 356.8 | 434.7 Period 40 48.8960.4075.40 95.03 | 120.8 154.8199.6 259.13379442.6767.11.342 1,779 Period 50 64.46 84.58 112.8 | 152.7 2093 290.3 | 406.5 573.8 815.1 1.164 2,400 4,995 7,218 Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Joslin choose? Why? 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 Net Cash Inflows Annual Accumulated Year Amount Invested $ 1,200,000 0 1 2 3 4 5 6 7 8 (Round your answer to one decimal place.) The payback for Option 1 (refurbish current machine) is years. Now complete the payback schedule for Option 2 (purchase). Net Cash Outflows Net Cash Inflows Year Amount Invested Annual Accumulated 0 $ 4,000,000 1 N 2 3 4 ch 5 6 7 00 8 9 10 (Round your answer to one decimal place.) The payback for Option 2 (purchase new machine) is years Compute the ARR (accounting rate of return) for each of the options. Compute the ARR (accounting rate of return) for each of the options, + ARR + % Refurbish Purchase % Compute the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places, X.XXX.US value) Net Cash PV Factor Present Years Inflow (i = 14%) Value 1 2 3 Present value of each year's inflow: (n = 1) (n=2) (n = 3) (n = 4) (n=5) (n = 6) (n=7) 4 5 6 7 8 8 (n = 8) Total PV of cash inflows 0 Initial investment (Click the icon Joslin Manufacturing, Inc. has a manufacturing machine that needs attention 0 Initial investment Net present value of the project Now compute the NPV for Option 2 (purchase). (Enter the factors to three decimal places, X.XXX. Use parentheses or a Net Cash Present PV Factor (i = 14%) Years Inflow Value 1 2 3 4 5 Present value of each year's inflow: (n = 1) (n=2) (n = 3) (n = 4) (n = 5) (n = 6) (n = 7) (n = 8) (n = 9) (n = 10) Total PV of cash inflows 6 7 8 9 10 0 Initial investment 7 8 9 (n = 7) (n = 8) (n=9) (n = 10) Total PV of cash inflows 10 0 Initial investment Net present value of the project Finally, compute the profitability index for each option, (Round to two decimal places X.XX.) Profitability in Refurbish Purchase Requirement 2. Which option should Joulin choose? Why? Ryour answers in Requirement1 Joslin should choose and its profitability indexin NPV because this option has a y period, an ARR that is the other option Joslin Manufacturing, Inc. has a manufacturing machine that needs attention Click the con to view additional information) Join expects the following net cash inflown from the two options: Click the loon to view the net cash flows) Joslines straight-line depreciation and requires an annual return of 14% (Click the icon to view Present Value of 51 table Click the icon to view Present Value of Ordinary Annuity of 51 table> (Click the icon to view Future Value of $1 table) (Click the icon to view Future Value of Ordinary Annulty of S1 table Read the conviromente
