please help asshole question two parts in sections and please make sure your answer isn't cut off and is clear. Thank you.

9- 2/2

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, Print Done Data table Year Refurbish Current Machine 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 $ Total 2,340,000 $ 4,200,000 Reference Present Value of SI 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 0.980 0.961 0.943 0.925 0.9070.890 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 0.5520.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.6210.567 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 0.583 0.547 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 0.404 0,351 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 0.744 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 0.601 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 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 0.078 Period 15 (0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 10.853 0.7280.623 0.534 0.4580.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 10.844 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 | 0.060 0.045 Period 18 10.836 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 10.828 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 200.820 0.673 0.554 0.456 0.377 0.3120.258 0.215 0.178 0.149 0.1040.073 0.061 0.051 0.037 0.026 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 1 0.990 0.980 | 0.971 0.962 0.9520,943 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 1.8591.833 1808 1.783 1.759 1.736 1.6901.647 1626 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 2.322 2.283 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.3873.312 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 4.3294.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3.2743.127 2.991 Period 6 5.7955,601 5.417 5.2425.07649174.767 4.623 4.4864.355 4.111 3.8893.784 3.685 3.498 3.326 Period 7 6.728 64726.230 6.0025.7865.582 5.389 5.206 5.033 4.868 4.564 | 4.288 4.1604.0393.812 3.605 Period 8 7.652 7.3257.020 6.733 6.463 6210 5.971 5.7475.535 5.335 4.968 |4.639 4.487 4.344 4.078 3.837 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.2475.9955.759 5.32849464.7724.607 4.3034.031 Period 10 9.4718.9838.530 8.111 7.7227.360 7.0246.710 6.418 6.145 5.6505.216 5.019 4.833 4.494 4.192 Period 11 10.368 9.7879.253 8.760 8.3067.887 7.499 2.1396,805 6.495 5.938 5.4535.2345.0294.656 4.327 Period 12 11.255 10.575 9.954 9.3858.8638.384 7.943 7.536 7.1616.814 6.1945.660 5.4215.197 4.793 4.439 Period 13 12.13411.34810.635 9.9869.3948.8538.358 7.904 7.487 7.103 6.424 5.8425.583 5.342 4.910 4.533 Period 14 13.00412 106 11.29610.563 9.899 9.295 8.745 8.2447.786 7.3676.6286.002 5.7245.468 5,008 4.611 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 5.0924.675 Period 16 14.71813.578 12.561 11.652 10.838|10.106 94478.851 8.313 7.8246.9746.265 3.9545.669 5.1624.730 Period 17 15.562 14.292 13.166 12.166|11.27410.477 9.763 9.122 8.544 8.022 7.1206.373 6.047 5.7495.222 4.775 Period 18 16.398 14.992 13.75412.659|11.690 10.828 10.059 9.372 8.756 8.2017.250 6.4676,128 5.818 5.2734.812 Period 19 17.226 15.678|14.32413.134|12.085|11.158 10.336 9.6048.950 8.365 7.366 6.5506.1985.8775.3164.844 Period 20 18.046 16.351 14.877|13.590|12.462 11.470 10.594 9.818 9.129 8.5147.4696.623 6.259 5.9295.353 4.870 Reference Future Value of Si 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 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1.020 1.0401.061 1.0821.103 1.1241.145 1.166 1.1881.210 1.254 1.300 1.323 1.030 1.061 1.093 1.125 1.158 1.191 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 1.7141.8281.949 2.211 2.502 2.660 1.083 | 1.1721.267 1.3691.4771.5941.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.195 | 1.305 1.423 1.551 1.689 1.8381.999 2.172 2.358 2.7733.2523.518 1.105 | 1.219 1.344 1.480 1.629 1.7911.967 2.159 2.367 2.594 3.106 3.707 4.046 1.116 1.243 | 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.1271.268 1.426 1.601 1.796 2.012 2.252 2.518 2.8133.138 3.896 4.818 5.350 1.138 | 1.294 1.469 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 1.1611.346 1.558 1.8012.079 2.3972.759 3.172 3.642 4.177 5.4747.1388.137 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 1.184 1.400 1.653 1.948 2.292 2.693 3.159 3.700 4.3285.0546.866 9.276 10.76 1.196 | 1.428 1.702 2.0262.407 2.8543.380 3.996 4.717 5.560 7.690 10.58 12.38 1.208 1.457 1.754 2.107 2.527 3.026 3.6174.316 5.142 6.116 8.613 12.06 14.23 1.220 1.486 1.806 2.1912.653 3.2073.870 4.661 5.6046.727 9.646 13.74 16:37 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Reference X - 4% Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 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 2.0202.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 Period 3 3.030 3.060 3.091 3.122 3.153 3.1843.215 3.246 3.278 3.310 3.3743.440 3.473 Period 4 4.060 4.122 4.1844.246 4.310 4.375 4.440 4.5064.573 4.641 4.779 4.921 4.993 Period 5 5.101 5.2045.3095.416 5.526 5.6375.7515.8675.985 6.105 | 6.353 6.610 6.742 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 | 7.153 7.336 7.523 7.716 8.115 8.536 8.754 Period 7 7.214 7.4347.6627.898 8.142 8.394 8.654 8.9239.2009.487 10.09 10.73 11.07 Period 8 8.286 8.5838.8929.2149.549 9.897 10.260 10.6411.03 | 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 13.58 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 16.63 17.71 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 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 47.58 Period 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.9855.72 Period 17 18.43 20.01 21.7623.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 Period 18 19.6121.41 23.41 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 51.1663.44 78.97 88.21 Period 20 22.02 24 30 26.87 29.7833.07 36.79 41.00 45.7651.16 57.28 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? 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 Year Amount Invested Annual Accumulated 1,300,000 0 $ 1 2 3 3 4 5 6 7 8 (Round your answer to one decimal place.) years. The payback for Option 1 (refurbish current machine) is Now complete the payback schedule for Option 2 (purchase). Net Cash Outflows Net Cash Inflows Annual Accumulated Year Amount Invested $ 2,100,000 0 1 2 3 4 5 6 7 8 GO 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. X.XXX. Use parentheses or a minus sign for an 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 alue) Net Cash PV Factor Present Years Inflow (i = 12%) Value 1 Present value of each year's Inflow. (n = 1) (n=2) 2 3 4 5 6 (n = 5) (n=6) (n=7) IIII 7 8 (n = 8) Total PV of cash inflows 0 Initial investment Not present value of the project 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 min Present Net Cash PV Factor Inflow (i = 12%) Value Years 1 2 2 MT 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 Net present value of the project Finally, compute the profitability index for each option (Round to two decimal places XXX) Profitability index Refurbish Purchase Requirement 2. Which option should Josin choose? Why? Review your newers in Requirement1 Joslin should choose and its profitability index is NPV De this options payback period, an ARR that is the other option, a