a. Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent.

Munch N Crunch Snack Company is considering two possible investments: a delivery truck or a bagging maching. The delivery truck would cost 525,320.42 and could be used to deliver an additional 49,000 bags of pretzels per year. Each bag of pretrels can be sold for a contribution margin of $0.38. The delivery truck operating expenses, excluding depreciation, are 50.52 per mile for 17,000 miles per year. The bagging machine woild replace an old bepging machinc, and its net investment cost would be $25,987.5. The new machirie would require three fewer hours of direct labor per oay, Direct labor is $10 per hour, There are 250 operating days in the year. Both the truck and the bagging machine are estimated to have four-year lives. The minimum rate of retum is 19%. However, Munch N' Crunch has funds to invest in only one of the projects. Annuitu of $1 at Combound Interest a. Compute the internal rate of return for cach investment, Use the above table of present value of an annuity of 51 . If requirid, round yout pritient valizin Iactor answers to three decimal places and internal rate of return to the nearest percent. b. The bagging machine rate of return was than the minimum rate of retum requirement of 19% while the dellvery track ata of iaturis nits than the minimum rate of return requirement of 19%. Therefore the recommendation is to invest in the