(Click the icon to view additional information.) Gilpin expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Gilpin uses straight-line depreciation and requires an annual return of 10%. WN30 2 $ 800.000 4 4 On A 6 5 More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $800,000. If refurbished, Gilpin 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. I X (Cli Refurbish Current Purchase New (Clic Year Machine Machine (Clic Year 1 $ 20,000 $ 1.230.000 Year 2 460,000 610,000 Year 3 340,000 490.000 Year 4 220,000 370,000 Year 5 100.000 250.000 Year 6 100,000 250,000 Year 7 100,000 250,000 Year 8 100,000 250,000 Year 9 250.000 250.000 Print Done