The company is considering two options. Option 1 is to refurbish the current machine at a cost of $ 2,200,000. If refurbished, Mandel 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.
Mandel expects the following net cash inflows from the two options:

Years Refurbish Current Machine Purchase New Machine
1 $100,000 $2,250,000
2 $440,000 $650,000
3 $340,000 $550,00
4 $240,000 $450,000
5 $140,000 $350,000
6 $140,000 $350,000
7 $140,000 $350,000
8 $140,000 $350,000
9 $350,000
10 $350,000
Total $1,680,000 $6,000,000

Mandel uses straight-line depreciation and requires an annual return of 10%.
Requirement:
Compute the payback, the ARR, the NPV, and the profitability index of these two options.