Questi Joslin Manufacturing, Inc. has a manufacturing machine that needs attention (Click the icon to view additional information (Click the icon to view Present Value of $1 table) Joslin expects the following net cash inflows from the two options (Click the con to view Prosent Value of Ordinary Annuity of Stable (Click the icon to view the net cash flows) (Click the icon to view Future Value of table Joslin uses straight-line depreciation and requires an annual return of 14% Now complete the payback schedule for Option 2 (purchase) Net Cash Outflows Net Cash Inflows i More Info Year Amount Invested Annual Accumulated 0 3,600,000 The company is considering two options Option 1 ss to refurbish the current machine at a cost of $1,800,000 If refurbished, Joslin expects the machine to last Enter any number in the edit fields and then click Check Answer another eight years and then have no residual value. Ophion 2 is to replace the machine at a cost of $3,600 000. A new machine would last 10 years and have no residual value parts Perods Period 1 Period 2 Period 3 Period 4 Period 5 Present Value of Ordinary Annuity of $1 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0,980 0,971 0.962 0.952 0.943 0.935 0.926 0917 0.9090.893 0.877 0.870 0.8620.847 0833 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1783 1759 1736 18901.647 1.626 1.605 1686 1528 2.9412.884 2.8292775 2.723 2673 2624 2.577 2.531 2487 2.402 2.322 2.283 2 246 2174 2 106 3.902 3.808 3.717 3630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.3294212 4.100 3.9933.890 3.791 3.605 3.433 3.352 3274 3.127 2.991 5.795 5.601 5.417 5.242 5076 4.917 4.767 4.623 4.486 4.355 4.111 3.8893.784 3.685 3.498 3.326 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5206 5.033 4.868 4.564 4.288 4.160 4.039 3.812 3.605 7.652 7.3257.020 6.7336.463 6.210 5.971 5.7475.535 5.335 4.9684.639 4.487 4 344 4.078 3.837 Period 6 Period 7 Period 8 1 Data Table - X - Year Refurbish Current Machine Purchase New Machine Year 1 $ 830,000 $ 2,640,000 Year 2 520,000 Year 3 610,000 480,000 390,000 260,000 Year 4 350,000 Year 5 130,000 220,000 Year 6 130.000 220.000 Year 5 130,000 130,000 220,000 220,000 Year 6 Year 7 130,000 Year 8 130,000 220,000 220,000 220,000 220,000 Year 9 Year 10 $ Total 2,520,000 $ 5,400,000 (Click the icon to view Future Value of $1 table) Joslin Manufacturing, Inc has a manufacturing machine that needs attention (Click the icon to view additional information) Josin expects the following net cash inflows from the two options (Click the icon to view the net cash flows) Joslin uses straight-line depreciation and requires an annual return of 14% (Click the icon to view Future Value of Ordinary Annuity of $1 tablo Read the requirements Net Cash Outflows Requirements Net Cash Inflows Annual Accumulated Year Amount Invested S 3,600,000 0 1. Compute the payback the ARR the NPV, and the profitability index of these two options 2. Which option should Joslin choose? Why? Enter any number in the edit fields and then click Check