21-22 Capital budgeting methods, no income taxes. Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Yummy has accumulated regarding the new machine is as follows: Cost of the machine Increased annual cash flows Life of the machine Required rate of return $80,000 $15,000 10 years 0% Y mmy estimates they will be able to produce more candy using the second machine and thus increase their annua cash o s. 1 e aso estimate there w ea man disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Required 1. Calculate the following for the new machine: Net present value Payback period Discounted payback period a. b. c. What other factors should Yummy Candy consider in deciding whether to purchase the new machine? d. 2