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Requirements 1. Compute the payback, the ARR, the NPV, and the profitability index of these two options. 2. Which option should Kilmer choose? Why? Data table More info The company is considering two options. Option 1 is to refurbish the current machine at a cost of $2,400,000. If refurbished, Kilmer 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 $3,200,000. A new machine would last 10 years and have no residual value. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{17}{|c|}{ Present Value of Ordinary Annuity of $1} \\ \hline Periods & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 14% & 15% & 16% & 18% & 0% \\ \hline Period 1 & 0.990 & 0.980 & 0.971 & 0.962 & 0.952 & 0.943 & 0.935 & 0.926 & 0.917 & 0.909 & 0.893 & 0.877 & 0.870 & 0.862 & 20.847 & \\ \hline Period 2 & 1.970 & 1.942 & 1.913 & 1.886 & 1.859 & 1.833 & 1.808 & 1.783 & 1.759 & 1.736 & 1.690 & 1.647 & 1.626 & 1.605 & 51.566 & \\ \hline & 2.941 & 2.884 & 2.829 & 2.775 & 2.723 & 2.673 & 2.624 & 2.577 & & & 2.402 & 2.322 & 2.283 & 2.246 & \begin{tabular}{lll} 6 & 2.174 \end{tabular} & \\ \hline d 4 & 3.902 & 3.808 & 3.717 & 3.630 & 3.546 & 3.465 & 3.387 & 3.312 & 3.240 & 3.170 & 3.037 & 2.914 & 2.855 & 52.798 & 82.690 & 02 \\ \hline Period 5 & & 4.713 & 4.580 & 4.452 & 4.329 & 4.212 & 4.100 & 3.993 & 3.890 & 3.791 & 3.605 & 3.433 & 3.352 & 3.274 & 3.127 & 2.99 \\ \hline Period 6 & 5.795 & 5.601 & 5.417 & 5.242 & 5.076 & 4.917 & 4.767 & 23 & 4.486 & 4.355 & 4.111 & 3.889 & 3.784 & 3.685 & 5.498 & \\ \hline 7 & 6.728 & 6.472 & 6.230 & 6.002 & 5.786 & 5.582 & & & & & & & & 4,039 & & \\ \hline & 7.652 & 7.325 & 7.020 & 6.733 & 6.463 & 6.210 & 5.971 & 5.747 & 5.5 & & & 39 & 4.487 & 4,344 & 4.078 & \begin{tabular}{lll} 8 & 3.837 \end{tabular} \\ \hline & 8.566 & 8.162 & 7.786 & 7.435 & 7.108 & 6.802 & 6.515 & 6.247 & 5.9 & 5.759 & 5.328 & 4.946 & 4.772 & 4.607 & 4.303 & 34. \\ \hline & 9.471 & 8.983 & 8.530 & 8.111 & 7.722 & 7.360 & 7.024 & 6.710 & 6.418 & 6.145 & 5.650 & 5.216 & 5.019 & 4.833 & 4.494 & 4 \\ \hline Peri & 10.36 & 9.787 & 9.253 & 8.760 & & 7.887 & 7.499 & 7.139 & & & & 5.453 & 5.234 & 5.029 & 4.656 & 3. \\ \hline & & & 9.954 & 9.385 & 8.863 & 8.384 & 3 & 6 & & & & 5.6 & & 7 & 4 & \\ \hline & & & & 9.986 & 9.394 & 8.853 & 8.3 & 7.9 & & & 6. & & & & 4.910 & \\ \hline & & & & & 39.899 & 9.295 & 8.7 & 8.244 & 7.786 & 7.3 & 6 & 6.0 & 4 & & 5.0 & \\ \hline & & & & & & & 8 & & 1 & 7.606 & 6.811 & 6.142 & 5.84 & 5 & 5.50 & \\ \hline & & & & & & & & & & & 6 & 6.265 & 5.954 & 5.669 & 5.162 & 4 \\ \hline & & & & & & & & & \begin{tabular}{l} 8.5 \\ 875 \end{tabular} & 8,0 & & & & 19 & 2 & \\ \hline & & & & & & & & & & 82 & 7. & & & 5.818 & 5.273 & 3 \\ \hline & & & & & & & & & & 3 & & 0 & & 5.877 & & 3 \\ \hline Peri & 118857 & & 1 & & 2.8 & 1.7641 & 10.8 & 10 & 9 & & & & & & 3 & \\ \hline & & & & & & & & & & 8.7 & \begin{tabular}{l} 7.562 \\ 7645 \end{tabular} & \begin{tabular}{l} 6.687 \\ 6.743 \end{tabular} & \begin{tabular}{l} 6.312 \\ 6.359 \end{tabular} & \begin{tabular}{l} 5.973 \\ 6.011 \end{tabular} & 5.384 & 4.891 \\ \hline & & & & & & & & & & & & & 6.3 & & 5.410 & \\ \hline & & & & & & & & & & & 6 & 68 & & & 32 & \\ \hline & & & & & & & & & & 9.07 & & 6.873 & 6.464 & \begin{tabular}{l} 6.073 \\ 6.097 \end{tabular} & \begin{tabular}{l} 5.451 \\ 5.467 \end{tabular} & \begin{tabular}{l} 4.937 \\ 4.948 \end{tabular} \\ \hline riod & 6227 & & & & 14.3 & 13 & & & 9.920 & 9.161 & 7.896 & & & & & 4.956 \\ \hline & & & & & & & & & & & & & & & 5.492 & \\ \hline & & & & & & & & & & & & & & & & 4.970 \\ \hline & & & & & & & & & & & & & & & 5510 & \\ \hline \end{tabular} Reference Print Done Future Value nf Ordinan Annuih, of eA Reference