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Joslin Manufacturing, Inc. has a manufacturing machine that needs attention. (Click the icon to view additional information.) Joslin expects the following net cash inflows from the two options: (Click the icon to view the net cash flows.) Joslin uses straight-line depreciation and requires an annual return of 12%. Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Joslin choose? Why? 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). Data table More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $1,600,000. If refurbished, Joslin 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 $4,000,000. A new machine would last 10 years and have no residual value. Mrmanm+ Vramon net Present Value of Ordinary Annuity of $1 Future Value of $1 Future Value of Ordinary Annuity of $1