Compute the payback for both options. Begin by completing the payback schedule for Option 1 (refurbish). Net Cash Inflows Year Net Cash Outflows Amount Invested $ 1,200,000 Annual Accumulated 0 1 N 3 4 5 6 7 8 i Data Table - X (Click the icon to view Present (Click the icon to view Future Va (Click the icon to view Future Va Year Refurbish Current Purchase New Machine Machine Read the requirements 1 $ Op 2 350,000 $ 340,000 270,000 200,000 3,780,000 510,000 440,000 More Info 3 4 370,000 5 130,000 130,000 6 The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,200,000. If refurbished, Henderson 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 $4,600,000. A new machine would last 10 years and have no residual value. 7 300,000 300,000 300,000 300,000 300,000 300,000 130,000 8 130,000 9 Print Done 10 $ 1,680,000 $ 6,900,000 Total