completly lost on this problem

Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Gammon choose? Why? Data table More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,800,000. If refurbished, Gammon 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 $3,600,000. A new machine would last 10 years and have no residual value. Gammon Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view Present Value of 51 table) (Click the icon to view additional information.) (Click the icon to view Present Value of Ordinary Annuity of 51 table) Gammon expects the following net cash inflows from the two options: (Click the icon to view the net cash fiows.) (Click the icon to view Future Value of 51 tabbe) Gammon uses straight-line depreciation and requires an annual return of 16%. (Click the icon to view Future Vafue of Ordinary nnuity of $1 table) Read the reguirments Kequirement 1. Lompute ine paydack, une ArK, une Nrv, ana the promitadiry index or these rwo options. Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish) The payback for Option 1 (refurbish current machine) is years. Now complete the payback schedule for Option 2 (purchase). The payback for Option 2 (purchase new machine) is years Compute the ARR (accounting rate of return) for each of the options Refurbish Purchate: Compute the NPV for each of the options. Begin with Option 1 (refurbish) (Enter the factors to three decimal places. XXxX. Use parentheses or a minus sign far a ned Years \begin{tabular}{ccc} Net Cash & PV Factor & Present \\ Inflow & (i=16%) & Value \\ \hline \end{tabular} Present value of each year's inflow: 1(n=1) 2(n=2) 3(n=3) 4(n=4) 5(n=5) 6(n=6) 7. (n=7) 8(n=8) 9(n=9) 10(n=10) Total PV of cash inflows Requirement 2. Which option should Gammon choose? Why? Review your answers in Requirement 1. Gammon should choose because this option has a paybuck period, an ArR that is the other option a