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Q Kimer Manufacturing Industring med ett Click the con todos tonalidomation Kilmer expect the followng net cash infows from the treations late con to the nechows) Kines straightine depreciation and requires an annual return of 16% (Cicon www Value of a Click the loon vaw Practice of Ondrary Arty Click the icons sew Future State Click the icon to view Pure Value of the Read the More info The con la considering the ons Ons is the curent machine at a co 1.300.000 the more than royers and need Options for cou of 1.600.000 Audi 10 years and on Requirement 1. Com the pack the NPV and the profanitynder of the Copo Compute the paymack for both opton Begin by completing the back acredule for Option treball Net Cash Net Info Amounted A Acum Data table 0 1.300.000 1 880000 6000 2 10000 Refurbish Current Year Machine 300000 Year $ $60.000 + 233000 Yuara 490000 5 100000 Year 30 DOO 100000 Year 4 230 000 7 100000 Years 100 000 100000 Year 100 000 and we decima Year 100 000 You 100.000 The book for the machines Now commityback for Options Year 10 Cacho NOL 5 2.500.000 Total Purchase New Machine 80000 0 000 520000 30.000 260.000 260.000 200.000 200.000 200.000 200.000 200.000 Print Dona Submit qui Print Done Kilmer Manufacturing, Inc. has a manufacturing machine that needs attention (Click the icon to view additional information.) Kilmer expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Kilmer uses straight-line depreciation and requires an annual return of 16%. Read the for FREE Now complete the payback schedule for Option 2 (purchase) Net Cash Outflows Net Cash Inflows Year Annual Amount Invested $ 1,600,000 Accumulated 0 $ 1 2 80000 650000 520000 390000 3 4 5 260000 6 260000 260000 7 8 260000 9 260000 10 260000 (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 Present value of net cash inflows ARR Kilmer Manufacturing, Inc. has a manufacturing machine that needs attention (Click the foon to view additional information.) Kilmer expects the following net cash inflows from the two options Click the icon to view the net cash flows) Kilmer uses straight-line depreciation and requires an annual return of 16% (Click the icon to view Prosent Value of $1 table.). Click the icon to view Present Value of Ordinary Annu (Click the icon to view Future Value of 51 table) (Click the icon to view Future Value of Ordinary Annuity Read the Gren The payback for Option 2 (purchase new machine) is years Compute the ARR (accounting rate of return) for each of the options Present value of net cash inflows Refurbish Purchase ARR % % Compute the NPV for each of the options. Begin with Option 1 (rofurbish) (Enter the factors to three decimal places. X.XXX Use parenthosas or a minus sign for a negative not present value) Net Cash Inflow PV Factor (1= 16%) Present Value Years 1 2 3 4 5 Present value of each year's Inflow In = 1) In 2) (3) in 4) in-5) in = 5) (n in 8) Total PV of cash inflows Indian 6 7 8 n Kilmer Manufacturing, Inc. has a manufacturing machine that needs attention (Click the icon to view additional information) Kilmer expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Kilmer uses straight-line depreciation and requires an annual retum of 16% (Click the icon to view Present Value of Click the icon to view Present Value o (Click the icon to view Future Value of (Click the icon to view Future Value of Read the focuiremen 7 5 in = 5) 6 (n=6) (n=7) 8 (n = 8) Total PV of cash inflows D Initial investment Net present value of the project Now computo the NPV for Option 2 (purchase). (Enter the factors to three decimal places Xxxx. Use parontheses or a minus sign for a negative net prosent value) Net Cash PV Factor Present Years Inflow ( - 10%) Value Prosont value of each year's intow 1 (n-1) 2 (n=2) 3 In 3) 4 5 in 5) (n=6) (n=7) 5 7 Kilmer Manufacturing, Inc has a manufacturing machine that needs attention Click the icon to view odtional information Kimer expects refolowing nat cash inflows from the two options Clex the icon to view the net cash flow) Kilmer uses straighane depreciation and requires an annual rotum of 16% Click the con to view Present of State) Click the icon to view Present of Ordinary Arulty of State) (Click the con to view Future we of stable) (Click the con to view Future Value of Ordnary Arvuity of State) Read tegur In 3) in 4) 4 5 ins 5 7 in 6) in ) in83 9 10 in 101 Total P et coinbow 0 In investment Net present value of the project Fraly, compute the greability for each opron (Round to wo decals XXX Probindex Refurbish Purchase Requirement 2. Which option shoulder choose? Why Raw your answers in Romant or should choose because this options payback period an ARR this the other on NPV and its profily indeki 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 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 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 0.516 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 0.49704760.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 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 0.3140.279 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 0233 Period 9 0.914 0.837 0.766 0.703 0.6450.5920.544 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 0.4 0.422 0.386 0.322 0.270 0.247 0.227 0.1910.162 Period 11 0.896 0.8040.722 0.650 0.585 0.5270475 0.429 0.388 0.350 0.287 0.237 0.215 0.1950.162 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 0.469 0.415 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 0.556 0.4810417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0458 0.394 0.339 0.292 0.252 0218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 0.844 0.714 0.605 0.5130436 0.371 0.317 0.270 0.231 0.1980.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.700 0.587 0.4940416 0.350 0.296 0.250 0.212 0.180 0.130 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 20 0.820 0.673 0,5540.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.359 0.2940.242 0.1990.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0.803 0.647 0.522 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.083 0.056 0.046 0.038 0.026 0.018 Period 23 0.795 0.634 0.507 0.4060.3260.262 0211 0.170 0.138 0.112 0.074 0.049 0.040 0.033 0.022 0.015 Period 24 0.788 0.622 0.492 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.066 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 0.016 0.010) Period 26 0.772 0.598 0.464 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.053 0.033 0.026 0.021 0.014 0.009 Period 27 0.764 0.586 0.450 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.047 0.029 0.023 0.018 | 0.0110.007 Period 20.757 0.574 1.0437 10 3330255 0196 n 150 116 nnan 1006042 0026 n02 101 100 I X Reference ta el Present Value of Ordinary Annuity 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 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 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 2673 2.624 2577 2.531 2487 2.402 2.322 2283 2246 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 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3,605 3.433 3.352 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.111 3.8893.7843,685 3.498 3.326 Period 7 6.7286.472 6.230 6.002 5.786 5.582 5.389 5.206 5,033 4.8684.564 4.288 4.160 4.039 3.812 3.605 Period 8 7.652 7325 7,020 6.733 6.463 6.210 5.9715.747 5.5355.335 4.968 4.639 4487 4.344 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 4303 4.031 Period 10 9.471 8.983 | 8.530 8.111 7.722 7.360 7.024 6.710 6.4186.145 5.6505.216 5.0194.8334494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5453 5.2345,0294.656 4.327 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.943 7.536 7.1616.814 6.194 5.660 5421 5.1974.793 4.439 Period 13 12.134 11.348 10.6359.986 9.394 8.853 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 7.367 6.628 6.002 5.724 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7,606 6.811 6.1425.8475.575 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 5.9545.669 5.1624.730 Period 17 15.562 14.292 13.166 12.166 11.27410.4771 9.763 9.122 8.5448.0227.1206.373 6.047 5.749 5.222 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 5.273 4.812 Period 19 17.226 15.678 14.32413.134 12.085 11.158 10.336 9.604 8.950 8.3657.366 6.550 6.198 5.8775.316 4.844 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 10.5949.818 9.129 8.5147469 6.623 6.259 5.929 5.353 4.870 Period 21 18.857 17.011 15.415 14.029 12.821 11.764 10.836 10.017 9 292 8.649 7.562 6.687 6.312 5.973 5.384 4.891 Period 22 19.660 17,658 15.937 14.451 13.163 12.042 11.061 10.2019.4428.7727.645 6.743 6.359 6.011 5.410 4.909 Period 23 20.456 18.292 16.444 14.857 13.489 12 303 11 272 10.371 9.5808.883 7.718 6.7926.399 6.044 5.432 4.925 Period 24 21.243 18.914 16.936 15 247 13.799 12.550 11469 10.529 9.707 8.985 7.784 6.835 6.4346.073 5.451 4.937 Period 25 22.023 19.523 17.413 | 15.622 14.09412.783 11.654 10.675 9.8239,077 7.843 6.8736.464 6.097 5.467 4.948 Period 26 22.795 20.121 17.877 15.983 14.375 13.003 11.826 10.8109.929 9.1617.896 6.906 6.491 6.1185.480 4.956 Period 27 23.560 20.707 18.327 16.330 14.643 13.211 11.987 10.935 10.027 9.237 7.943 6.935 6.514 6.136 5.492 4964 Period PR 124 216 21.221.1 18 764 | 16.663 1 14 9 13 4662 12.127 | 11.051 110 11619 307 7 R4 1691 16.524 1525.502 4970 - Reference 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 Future Value of $1 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 1.158 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 1.262 1.311 1.360 1.4121.464 1.574 1.689 1.749 1.051 1.104 1.159 1217 1.2761.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 1.062 1.126 1.1941.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 1.072 1.149 | 1.230 1.316 1.407 1.504 1.606 1.7141.828 1.949 2.211 2.502 2.660 1.083 1.172 1.267 369 1.47 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.3582.773 3.252 3.518 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 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.127 1.2681.426 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 2.133 2.410 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 1.801 2.079 2.3972.759 3.172 3.642 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 8.137 9.358 1.184 1.400 1.653 1.948 2.292 2.693 3.1593.700 4.328 5.0546.866 9.276 10.76 1.196 1.428 1.702 2.026 2407 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 1486 1.806 2.191 2.653 3.207 3.870 4.661 5.604 6.727 9.646 13.74 16.37 1.232 1.516 | 1.860 2.279 2.786 3.400 4.1415.034 6.109 7.400 10.80 15.6 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 1.974 | 2.465 3.072 3.820 4.741 5.871 | 7258 8.954 13.55 20.36 24.89 1.270 1.608 2.033 2.563 3.225 4.049 5.0726,341 7.911 9.850 15.18 23.21 28.63 1.282 1.641 2.094 2.666 3.386 4.2925.427 6.848 8.623 10.83 17.00 26.46 32.92 1.295 1.673 2.157 2.772 3.556 4.549 5.8077.396 9,399 11.92 19.04 30.1737,86 1.308 1.707 2 221 2.883 3.733 4.822 6.214 7.988 10.25 13.11 21.32 34 39 43,54 1321 1 741 2 280 12999 13920 15 112 16 849 8627 11 17 14 42 21 B 30 20 50 7. 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 2R Reference Penods 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 Future Value of Ordinary Annuity of $1 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 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.080 2.090 2.100 2.120 2.140 2.150 3.0303.060 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 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 5.101 5.204 5.309 5.416 5.5265.637 5.751 5.867 5.9856.105 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 7.6627.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8.286 8.583 8.892 9.214 9.549 9.897 10.260 10.64 11.03 11.44 12.30 13.23 13.73 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 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 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 12.68 13.41 14.19 15.03 15.92 16.87 17.89 18.98 20.14 21.38 24.13 27.27 29.00 13.81 14.68 15.62 16.63 17.7118.88 20.14 21.50 22.95 24.52 28.03 32.09 34.35 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 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 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 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 65.08 19.61 21.41 23.41 25.65 28.13 30.9134.00 37.45 41.30 45.60 55.75 68.39 75.84 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 22.02 24.30 26.87 29.78 33.07 36.79 41.00 45.76 51.16 57.28 72.05 91.02 102.4 23 24 25.78 28.68 31.97 35.72 39.99 44.87 50.42 56.76 64.00 81.70 104.8 118.8 24.47 27.30 30.5434.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 25.72 28.85 32.45 36.62 41.43 47.00 53.4460.89 69.53 79.54 104.6 138.3 159.3 26.97 30.42 34.43 39.08 44.50 50.82 58.18 66.76 76.79 88.50 118.2 158.7 184.2 28.24 32.03 36.46 41.65 47.73 54.86 63.25 73.11 84.70 98.35 133.3 181.9 212.8 29.53 33.67 38.55 44.31 51.11 59.16 68.68 79.95 93.32 109.2 150.3 208.3 245.7 30.82 35.34 40.71 47.08 54.6763.71 7448 87.35 102.7 121.1 1694 238.5 283.6 32 13137 051 42 93 149.97 58 an 1 68 53 R0 70 10534 1130 134 2 190 7 27291.3271 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 > Period 26 Period 27 Parind 2 Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Kilmer choose? Why