The management of Orange Manufacturing needs a new high tech sorting machine and has two different proposals under consideration. They require a rate of return of 15% discount rate) and the Accounting Department has prepared the following information: B Initial Investment $ 2.200.000 $ 3,000,000 8 years $ 740,000 Useful Life of Equipment Net Annual Cash Flow 8 years + $ 545,000 $ 80,000 Salvage Value $0 Required: Answer the following questions. Show your work and clearly label your final answers. No calculations = No credit. 1) Calculate the Payback period for each option: Investment A: Investment B: 2) Calculate the Net Present Value of each option: Investment A: Investment B: 3) Calculate the Profitability Index of each option: Investment A: Investment B: 4) Which option should Orange choose and why