Gammon Manufacturing, Inc. has a manufacturing machine that needs attention. Gammon expects the following net cash inflows from the two options Gammon uses straight-line depreciation and requires an annual return of 16%. The company is considering two options. Option 1 is to refurbish the current machine at a cost of 2,000,000. If refurbished, Gammon expects the machine to last another 8 years and then have no residual value. Option 2 is to replace the machine at a cost of 4,000,000. A new machine would last 10 years and have no residual value. Refurbish Current Machine Purchase New Machine Year 1 $710,000 $3,030,000 Year 2 770,000 910,000 Year 3 550,000 690,000 Year 4 330,000 470,000 Year 5 110,000 250,000 Year 6 110,000 250,000 Year 7 110,000 250,000 Year 8 110,000 250,000 Year 9 250,000 Year 10 250,000 Total $2,800,000 $6,600,000 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)