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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. req X Tre Value Data table Refurbish Current Machine Purchase New Machine the A Year Begirl $ 220,000 $ 1,320,000 Year 1 Year 2 560,000 600,000 Net Year 3 440,000 480,000 Innual Year 4 320,000 Year 5 200,000 200,000 Year 6 360,000 240,000 240,000 240,000 240,000 Year 7 200,000 200,000 Year 8 Year 9 240,000 - x Ire Data table I can 1 2LVUVI EU VOV the A Year 2 560,000 600,000 Year 3 Begir 440,000 480,000 Year 4 320,000 360,000 Net Year 5 200,000 240,000 nnual Year 6 200,000 240,000 Year 7 200,000 240,000 240,000 Year 8 200,000 Year 9 240,000 240,000 Year 10 $ 2,340,000 $ 4,200,000 Total Reference has wad ng | w the Depre Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0990 0.9800971 0902 0952 0943 0935 0 926 0917 0.90908930877 0.87008820847 0833 Period 2 090 0961 0943 0925 090708900873 0857 0842 08260 797 0.789 0.7560743 0718 0694 Period 3 0.971 09420.915 0889 086408400816 0.794 0772 07510712 0.675 065806410.609 0579 Period 4 0961092408880855 0823 0.7920763 07350708 068306380502 0572 0.552 0516 0.482 Period 5 0.951 0905 08630822. 078207470713 0.081 0650 062105670519 049704760.437 0402 Period 6 0342 088808370 790 074607050668 0.630 0595 056405070456 0.432 04100370 0335 Period 7 09330871 08130 7000 7110065 0.623 0.583 0547 05130452 0400 0376 035403140279 Period 8 0.923 0 853 07890731 067706270582 0540 0502 046704040351 032703050288 0233 Period 9 0914 0837 07860703 004505920544 0600 0.460 0424 03810308 0284 0.263 02250194 Period 10 0905 082007440676 061405580508 0483 0.422 0386 03220270 0247 02270191 0162 Period 11 08960804072200500585 05270475 0.429 0388 03500 287 0237 0215 0.19 0.102 0.135 Period 12 0887 0788 0.7010625 0.55704970444 03970356 0319 02570208 0 1870 1680.137 0.112 Period 13 08700 773 06810 601 05300 400 0.415 0368 0326 029002200.182 0.163 0 1450 116 0093 Period 14 0870075800610577 050504120388 0340 020 0263 0 2050.160 0.141 0.125 0099 0.078 Period 15 0 301 0743 06420586 0 481 04170302 0315 0275 0230 0.183 0.140 0 123 0.1080084 0055 te the or botil utlow vested 300,00 - Reference as ad $1 ta nd the tab pre 0 197 Period 15 10.853 0728 623 0534 04580394 T0339 0242 0252 T0218 0163 0.123 70107 TU093 00710054 Period 17 0844 07140605 0513 0.4360371 0317 0270 0231 0.1980.148 0.108 0093 0.0800060 0045 Period 18 0838070005870494041603500 200 0.250 0212 0 1800 1300095 0081 00090051 0038 Period 19 0828068605700475 039503310277 0232 0.194 0 1640 1160083 007000600043 0.031 Period 20 08200673 05540456 0377 0312 0258 0215 0.178 0.1490 1040073 0061 0061 0037 0026 Period 21 0811 0 68005380439 0359 0294 0242 0199 0164 0.135 0093 0064 005300440031 0022 Period 22 0803064705220422 0342 02780226 0184 0.150012300830058 0046 0038 0.026 0018 Period 23 0795083405070 406. 03260262 0211 0 170 0 1380 11200740049 0.0400033 0022 0.015 Period 24 0788 062204820390 03100247 0 1580 1280 10200660043003500280019 0.013 Period 25 0780 061004780375 0295 0233 0.184 0.14 0.116 0092 00690038 0030 0.0240016 0.010 Period 26 0.772 059804640361 02810220 0.172 135 0106 001400530 033 002600210014 0009 Period 27 0764 0.586 04500347 02680 2070 161 0.125 0098 0.07600470 029 0023 0.0180011 0007 Period 28 0.757 05740437 0333 02550196 0.150 0.116 0000 00600042 0026 00200016 0010 0006 Period 29 0 7490563 04240321 02430185 0 141 0 107 0082 0063 0037 0.022 00170014 0.008 0006 Period 30 0 742 0.55204120308 02310 1740 131 0 099 0.075 00570033 0020 00150012 0.007 0.004 Period 40 067204530307 0208 0 142 00970067 0046 003200220011 0005 0004 0.003 0.001 0.001 Period 50 0 608 0372 02280141 008700540034 0021 0013 0000 0000 0001 0001 0.001 the bolil how sted 00,00 This question! 1 point($) possible eference N 6% 7% Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0 990 0 980 0971 0.962 0.952 0943 09350 926 09170 909 08930877 0.870 0862 0847 0833 Period 2 1970 1.942 1.9131886 1859 1833 1808 1 783 1759 1736 1 690 1647 1626 1 605 1.566 1.528 Period 3 2941 2884 28292775 2723 2673 2624 2577 2531 2487 240223222283 2246 2174 2.106 Period 4 3902 3 8083717 3630 35463 4653387 33123 240 3170 3.037 2 9142856 2798 2690 2.589 Period 5 4 853 4713 45804452 432942124 100 3.993 3 890 3791 3.605 34333362 3274 3127 2.991 Period 6 5.795 5801 5 417 5242 507849174767 4623 4486 4355 4 111 3 889 3784 3 685 3.498 3328 Period 7 6.728 6.472 62306 002 5.786 5,582 53895206 5033 4868 456442884160 4 039 3812 3605 Period 8 7652 7325 70206 733 6.463 6.210 5971 5747 5535 5335 49684 639 4487 434440783837 Period 9 8.508 8 162 7.788 7435 71086 802 6 515 6 247 5 996 5759 532849464772 4 607 4 303 4031 Period 10 9471 8.983 8.530 8.111 7722736070246.710 6418 6.145 5650 5216 5019 4833 4494 4192 Period 11 10368 9787 9.2538760 8 3067887 749071396 805 6.495 5938 5453 5234 5029 4656 4327 Period 12 11 255 10575 9.954 9386 8863838179437538 7 161 6814 6.1945.660 5421 5 197 4793 4439 Period 13 12 134 11 318 10 635 9 986 93948.853 83587904 7487 7 103 642458425583 5342 4910 4533 Period 14 13 004 12 106 11.296 10.563 9899920687458244 7788 7367 6.62860025 7245408 5008 4611 Period 15 13 885 12849 11 938 11 118 103809712 9.108 8559 8061 7606 681161425847 5.675 6092 4675 Reference Period 16 14.718 135781256111652 10.83810 106944788518313782469746265 5954 6.6695.162 4730 Period 1715562 14292 13166 12 166 1127410477 9763 9122 8544 8022 7.1206373 6047 5.749 5222 4.775 Period 18 16,398 14992 13 75412 659 11 690 10 828 10.0599372 8.756 8201 7250 64676.128 5.818 5273 4812 Period 19 17 226 15.678 1432413.1341208511.158103389604 8950 8365 736665606.198 58775316 4844 Period 20 18.046 16 351 1487713 590 1246211470105949 818 9.129 8514 7.469 6.623 6259 5929 5353 4870 Period 21 18.857 1701115415 14 029 1282111 764 10.83810017 9292 8649 75626 687 6.312 5973 5384 4891 Period 22 19.660 17658 1593714.451 13 163|12042 11 061 10. 2019.442 87727 645 6.7436359 6011 5.410 4909 Period 23 20 456 18 292 16.44414857 13 489 12 303 11 272 10371 95808 883 77186 792 6 399 6044 5432 4925 Period 24 21 243 18 914 16.936 15 247 13.79912 550 11 469 10.529 9.707 8.985 7784 6835 6.434 6073 5451 4.937 Period 25 22.023 1952317413 15 622 1409412783 11.654 10675 0523 90777843687364646097 5467 4948 Period 26 22795 20 121 17877 15 983 143751300311 826 10 810 9.929 9.161 78966 9066491 6 118 5 480 4956 Period 27 23 500 20 707 1832716330 14643 13 211 11.98710935 10 027 9237 7943 6.935 65146 136 5492 4964 Period 28 2431621281 18764 16.663 14898 13 406 12 13711051 10.116 9307798169616534 6 152 5502 4.970 Period 29 25 088 21844 19 188 16 984 15.141 13.591 12278 11.158 10.198 9370 80226.9836561 6 166 55104975 Period 30 25.808 22 396 19.600 17 292 15372 13765 12400 11 258 10 274 9427 805570036568 6177 5517 4979 Period 40 32 835 27 356 23 115 19.793 17 150 15 046 13 332 11.925 10.757 9 779 824471056642 8 233 5518 4 997 Period 50 39 190 3142425 730 21.482 182561570213 80112233 10 962 9915 830417133 1 A 2A 564 4000 1 dditional in net cash in he nel cast reciation al Reference hnuity of $1 table) uity of $1 table the paybach both options Penods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 ws ted Future Value of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1010 1020 1030 1040 1050 1000 1070 1080 1090 1100 1120 1140 1150 1.020 1040 1061 10821103 1124 1145 1168 1188 1210 1254 1300 1323 1030 1061 1093 1125 1158 1191 1225 1260 1295 1331 140514821521 1.041 108211201 170 1216 1212 1311 1300 1412 1414 157415891749 1.051 1104 1.150 1217 1276 1338 1403 1489 1 539 1611 1762 1.925 2011 1052 1128 114 1265 1340 14191501 15871677 1772 197421862313 1072 11491230 1316 1407 1504 1806 1714 1828 1949 2211 2502 2660 108311721267 1389 1477 1504 1718 1851 1993 2144 247628533059 1094 11961305 1423 1551 1689 1838 1999 2172 2358 277332523518 110512191344 1480 1.629 17911967 2 159 2367 2594 3.106 37074046 1.116 1243 134 1539 1710 1898 2105 2302 2580 2853 3479 4228 4652 1 127 1288 1428 1601 1796 2012 2252 2518 2 813 3 138 3896 4818 5350 1138 12941469 1865 1886 2133 2410 2720 30663452 43635 492 8.153 1 149 1319 15131732 1980 2281 25792937 3 342 3.798 4887 62817076 1161134615581801 2079 2397 2759 3 172 3642 4177 547471388 137 AN 0,000 Period 11 Period 12 Period 13 Period 14 Period 15 ference Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Period 30 Period 40 Period 50 1.173 1373 1605 1873 2.183 2540 2.952 3426 3.970 4.595 6.130 8.1379.358 1 1841.400 1653 1.948 2292 26933 1593700 4.328 5.054 6.8669 276 1076 1.1961428 1702 2026 2407 28543380 3.996 4717 5560 7690 1058 12 38 1 208 1457 1754 2 107 2527 3026 3.617 4316 5.142 6.116 8.613 12.06 1423 1.220 1.4861.806 2 191 2653 3 2073.870 4.661 5.604 6.727 9.646 1374 16 37 1232 15161.860 2279 2786 34004141 5034 6 109 7.400 10.80 1567 18.82 1 245 15461916 2370 2925 3.604 4430 5437 6.659 8.140 12.10 17 86 21 64 1.257 1577 1974 2465 3072 3.8204741 5.871 7258 8954 1355 2036 2489 127016082033 2563 3225 4.049 5.0726341 7911 9.850 15 18 23 21 28 63 128216412094 2666 3386 4.292 5427 6 848 8 623 1083 1700 2646 32 92 1295 1673 2.157 2772 3 556 45495 807 7396 9399 11.92 1904301737 86 1.308 17072221 2883 3733 4822 6214 7988 10 25 13.11 2132 34 39 43 54 1321 1741 2 288 2 999 3.920 5112 6649 8 627 11.17 14.42 23 88 39 205007 1335 1.7762357 3.119 4 116 5.418 7 114 9317 12.17 1586 26.75 44 69 57 58 1 348 1811 2.427 3 243 4322 5.743 7612 10 06 13 27 17 45 29 96 50 95 | 66 21 14892 2083 262 4801 7040 1029 14.97 2172 31.41 45.26 93 05188.9 | 2679 1.64526924384 7 107 11.47 18.42 2946 46.90 7436 11742890 700 2 1,084 Reference 7 3 3) 1 in4 5 in5) (Click the icon to view Present Joslin Manufacturing, Inc. has a manufacturing machine that needs attention 6 7 0 (n = 6) (n = 7) 8 (n = 8) Total PV of cash inflows Initial investment Not prosent 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 net pre Net Cash PV Factor Present Years Inflow (i = 12%) Value Present value of each year's inflow: in = 1) 2 (n=2) 3 (n = 3) (n=4) 1 4 (Click the icon to view Present Value of Josin Manufacturing, Inc. has a manufacturing machine that needs attention 5 (n = 5) 0 in 6) 7 (n=7) (n=8) 8 9 0 10 in10) Total PV of cash inflows 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 Joslin choose? Why? DO hase irement 2. Which option should Josin choose? Why? w your answers in Rocurement in should choose the other option NPV, and is probably index is because this option has a payback period, an ARR that is

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