please help. all info here. need help with whole question.

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More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,300,000. 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 $2,100,000. A new machine would last 10 years and have no residual value. .. Data table Refurbish Current Machine Year Purchase New Machine Year 1 $ 220,000 $ 1,320,000 Year 2 560,000 600,000 Year 3 440,000 480,000 Year 4 320,000 360,000 Year 5 200,000 240,000 Year 6 200,000 240,000 Year 7 200,000 240,000 Year 8 200,000 240,000 Year 9 240,000 240,000 Year 10 $ 2,340,000 $ 4,200,000 Total Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 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 10,980 0.961 0.943 0.923 0.907 0.890 0.873 0.857 0.8420.826 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 0.8230.792 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 0.6660.630 0.596 0.564 0.507 0.456 0.432 0,410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.7110.665 0.623 0.5830.547 0.513 0.452 0.400 0.376 0.354 0.314 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 0.5440.500 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 0.558 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 0.3880.350 0.287 0.237 0.215 0.19 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 10.601 0.530 0.4690.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 10.870 0.758 0.661 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 10.861 0.743 0.642 0.555 0.481 0.417 0.362 0.313 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.7280.623 0.534 0.4580.394 0.3390.292 0.252 0.218 0.163 0.123 0.1070.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.313 0.436 0.371 0.317 | 0.270 0.231 0.1980.146 0.1080.093 0.080 0.060 | 0.045 Period 18 0.836 0.700 0.587 0.494 0.4160.350 0.296 0.250 0.212 0.180 0.130 0.095 0.081 0,069 0.051 0.038 Period 19 10.828 0.686 0.570 0.475 0.396 0.331 0.272 0.232 0.1940.164 0.116 0.083 0.070 0.060 | 0.043 0.031 Period 200.820 0,673 0.554 0.456 0.377 0.3120.258 0.215 0.1780.149 0.104 0.073 0.061 0.051 0.037 0,026 Reference ol Present Value of Ordinary Annuity of S1 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 0.943 0.935 0.9260.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.8591.8331.8081.783 1.759 1.736 1.6901.647 1.626 1.6051.566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.3222.283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.3873.3123.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 Period 5 4.853 4.7134.580 4.452 4.329 4.212 4.100 3.9933.890 3.791 3.605 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 4.623 4.4864.355 4.111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 6 472 6.230 6.002 5.786 5.582 5.389 5.206 3.033 4.8684.564 4.288 4.160 4.039 3.812 3.605 Period 8 7.652 7.3257.020 6.7336.463 6.210 5.9715.7475.535 5.33549684.6394.4874.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.9955.759 5,328 | 4.946 | 4.7724.607 4.303 4.031 Period 10 9.4718.9838.530 8.1117.722 7.360 7.0246.710 6.418 6.145 5.6505.216 5.019 4.833 4.494 4.192 Period 11 10.368 9.7879.2538.760 8.3067.887 7.499 7.139 6.805 6.495 5938 5.453 5.234 5.0294.656 4.327 Period 12 11.255 10.575 9.954 9.3858.8638.384 7.9437.5367.1616.814 6.1945.660 5.421 5.1974.793 4.439 Period 13 12.134 11.348 10.6359.986 9.3948.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 | 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.3676.6286.0025.724 5.468 5.0084611 Period 15 13.865 12.849|11.93811.11810.380 9.712 9.108 8.559 8.061 7.606 6.811 6.142 5.8475.575 5.092 | 4.675 Period 16 14.718 13.57812.561 11.652 10.838/10.106 94478.851 8.313 7.8246.9746.2655.9545.669 5.1624.730 Period 17 15.562 14.292 13.166 12.166|11.27410.477 9763 9.122 8.544 8.022 7.1206.373 6.047 5.749 5.222 4.775 Period 18 16.398 14.992 13.754 12.65911.690 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|12.08511.15810.336 9.604 8.950 8.3657.366 6.550 6.1985,877 5.3164.844 Period 20 18.046 16351 14.877|13.590|1246211.470 10.594 9.818 9.129 8.514 7.4696.623 6.259 5.9295.353 4.870 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 Period 11 Period 12 Period 13 Period 14 Period 15 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 1.082 1.103 1.1241.145 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 1.1591.217 1.2761.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.062 1.126 | 1.1941.265 | 1.3401.419 1.501 1.587 1.677 1.772 1.974 2.1952.313 1.072 1.149 1.2301.316 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 2.8533.059 1.094 1.1951.305 1.423 1.551 1.6891.8381.999 2.172 2.3582.7733.2523.518 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 1.1161.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.2264.652 1.1271.2681.426 1.601 1.796 2.012 2.252 2.518 2.813 3.138 3.896 4.818 5.350 1.138 | 1.2941.469 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 2.5792.937 3.342 3.798 4.8876.261 7076 1.161 1.346 1.558 1.8012.0792.3972.759 3.172 3.6424.177 5.474 7.1388.137 1.173 1.373 1.605 1.873 2.183 2.5402.952 3.426 3.970 4.595 6.130 8.1379.358 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4,328 5.0546,866 9.276 10.76 1.1961.4281.702 2.0262.407 2.854 3.380 3.996 4.717 5.560 7.690 10.58 12.38 1.208 1.4571.754 2.107 2.527 3.026 3.6174.316 5.1426.116 8.613 12.06 14.23 1.220 1.486 1.806 2.1912.653 3.2073.870 4.661 5.604 6.727 9.646 13.74 16.37 Period 16 Period 17 Period 18 Period 19 Period 20 Reference Future Value of Ordinary Annuity of $1 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 2.020 2.030 2040 2050 2.060 2.070 2.080 2.090 2.100 2.1202.140 2.150 Period 3 3.0303.0603.091 3.122 3.153 3.1843.215 3.2463.278 3.310 3.3743.440 3.473 Period 4 4.0604.122 4.1844.246 4.310 4.375 4.440 4.5064.573 4.641 | 4.779 4.921 4.993 Period 5 5.101 5.204 5.3095.416 5.526 5.6375.7515.8675.9856.105 6.353 6.610 6.742 Period 6 6.1526,308 6.468 6,633 6.802 6.975 | 7.1537.3367.523 7.716 8.115 8.536 8.754 Period 7 7.214 7.4347.662 7.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 11.07 Period 8 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 Period 9 9.369 9.755 10.16 10.58 11.03 | 11.49|11.98 12.4913.02 13.58 14.78 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 12.8113.49 14.21 14.97 | 15.78 16.65 17.56 18.53 20.65 23.0424.35 Period 12 12.68 13.41|14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.3824.13 27.2729.00 Period 13 13.81 14.68 15.62 16.631771 18.88 20.14 21.50 22.95 24.52 28.03 32.09 34 35 Period 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 2421 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 43.8447.58 Period 16 17.2618.64 20.1621.8223,66 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 40.54 48.88 59.12 65.08 Period 18 19.61 21:41 23.4125,65 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 27.6730.54 33.76 37 38 41.45 46.02 51.1663.44 78.97 88.21 Period 20 22.02 24 30 26,87 29.7833.07 36.79 41.00 45.76 51.16 5728 72.05 91.02 102.4 Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Joslin choose? Why? Joslin Manufacturing, Inc has a manufacturing machine that needs attention. Click the icon to view additional information Joslin expects the folowing net cash inflows from the two options Click the icon to view the net cash flow) Josinusos straight line depreciation and requires an annual return of 12% (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table. (Click the icon to view Future Value of $1 table (Click the icon to view Future Value of Ordinary Annuity of 51 table Read the requirements 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 Inflows Annual Accumulated Year Net Cash Outflows Amount Invested $ 1,300,000 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 $ 2,100,000 1 2 3 4 5 6 7 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 ARR Refurbish Purchase Compute the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places. Xxxx Use parentheses or a minus sign for a negative not pro value) Compute the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places XXXX Use parintheses or a minus sign for a neceive not procent value.) Present Net Cash Inflow PV Factor (12%) Years Value + Present value of each year's Inflow (n=1) n=2 in = 3) 2 4 5 2 In 5) In - 6 In7) (8) Total PV of cash inflows 0 Initiativestment 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 minus sign for a negative not present value.) Net Cash Inflow PV Factor (i = 12% Present Value Years 1 2 Present value of each year's inflow in = 1) (n=2) in = 3) in 4) in 5) 4 5 7 in +9) 10 In 10) Total PV of cash inflows Initial investment 0 Net prosont value of the project Finally, compute the profitability Index for each option (Round to two decimal places Xxx.) Requirement 2. Which option should Joslin choose? Why? Review your answers in Requirement1 Joslin should choose and its profitability index is because this option has a payback period, an ARR that is the other option, a NPV