Weiler Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view Present Value of $1 table.) i (Click the icon to view additional information.) Weiler expects the following net cash inflows from the two options: (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view the net cash flows.) (Click the icon to view Future Value of $1 table.) Weiler uses straight-line depreciation and requires an annual return of 12%. (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Read the requirements. 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 0 1,200,000 W N - YOUAMore info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1 .2g. If refurbished. Weller 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 $4.4. A new.r machine would last 10 years and have no residual value. Data table Refurbish Current Purchase New Year Machine Machine Year 1 310,000 $ 3,480,000 Year 2 410,000 580,000 Year 3 310,000 480,000 Year 4 210,000 380,000 Year 5 110,000 280,000 Year 6 110,000 280,000 Year 7 110,000 280,000 Year 8 110,000 280,000 Year 9 280,000 Year 10 280,000 1,680,000 $ 6,600,000 TotalFuture Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 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 2010 2 020 2 030 2040 2.050 2.060 2.070 2.080 2.090 2.100 2120 2.140 2.150 3.060 3.091 3.122 3.153 3.184 3.215 3.246 3.278 3.310 3.374 3.440 3.473 Period 3 3.030 Period 4 4.122 4.184 4.246 4.310 4.375 4.440 4.506 4.573 4.641 4.779 4.921 4.993 4.060 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.751 5.867 5.985 6.105 6.353 6.610 6.742 8.754 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 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 Period 8 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 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 15.19 15.94 17.55 19.34 20.30 Period 11 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 Period 12 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 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 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 14 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 50.98 55.72 65.08 Period 17 18.43 20.01 21.76 23.70 25.84 28.21 30.84 33.75 36.97 40.54 48.88 59.12 Period 18 19.61 21.41 23.41 25.65 28.13 30.91 34.00 37.45 41.30 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 51.16 63.44 78.97 88.21 Period 20 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 Period 21 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 Period 22 24.47 27.30 30.54 34.25 38.51 43.39 49.01 55.46 62.87 71.40 92.50 120.4 137.6 Period 23 25.72 28.85 32.45 36.62 41.43 47.00 53.44 60.89 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 Period 24 Period 25 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 Period 26 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 Period 27 30.82 35.34 40.71 47.08 54.67 63.71 74.48 87.35 102.7 121.1 169.4 238.5 283.6 Period 28 32.13 37.05 42.93 49.97 58.40 68.53 80.70 95.34 113.0 134.2 190.7 272.9 327.1 Period 29 33.45 38.79 45.22 52.97 62.32 73.64 87.35 104.0 124.1 148.6 214.6 312.1 377.2 Period 30 34.78 40.57 47.58 56.08 66.44 79.06 94.46 113.3 |136.3 164.5 241.3 356.8 434.7 Period 40 48.89 60.40 75.40 95.03 120.8 154.8 199.6 259.1 337.9 442.6 |767.1 1,342 1,779 Period 50 64.46 84.58 112.8 152.7 209.3 290.3 406.5 573.8 815.1 1,164 |2,400 4,995 7,218Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Weiler choose? Why