Corn Doggy Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle,

Question:

Corn Doggy Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $262,000. In addition, Austin estimates that the new machine will increase the company's annual net cash inflows by $40,300. The machine will have a 12-year useful life and no .
(a): Calculate the payback period.
(b): Calculate the machine's internal rate of return.
(c): Calculate the machine's using a of 10%.
(d): Assuming Corn Doggy Inc. 's is 10%, is the investment acceptable? Why or why not?
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