Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $1,800. The machine should be usable for 6 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 7

What is the estimated annual sales in cans of soda?

What is the contribution margin per can of soda?

How many cans of soda must be sold each year to break even?

Annual incremental cash inflows from the soda machine?

what is the payback period in years?

If the time value of money is 12% per year, what is the net present value? Use the tables

What is the internal rate of return? Pick the closes interest rate from the tables

Interest	Periods		Interest		Periods
Rate	3	4	5	6		Rate	3	4	5	6
2.0%	2.884	3.808	4.713	5.601		50.5%	1.399	1.594	1.724	1.810
2.5%	2.856	3.762	4.646	5.508		51.0%	1.391	1.584	1.711	1.795
3.0%	2.829	3.717	4.580	5.417		51.5%	1.383	1.573	1.698	1.781
3.5%	2.802	3.673	4.515	5.329		52.0%	1.375	1.563	1.686	1.767
4.0%	2.775	3.630	4.452	5.242		52.5%	1.368	1.553	1.674	1.753
4.5%	2.749	3.588	4.390	5.158		53.0%	1.360	1.542	1.662	1.740
5.0%	2.723	3.546	4.329	5.076		53.5%	1.352	1.532	1.650	1.726
5.5%	2.698	3.505	4.270	4.996		54.0%	1.345	1.523	1.638	1.713
6.0%	2.673	3.465	4.212	4.917		54.5%	1.337	1.513	1.626	1.700
6.5%	2.648	3.426	4.156	4.841		55.0%	1.330	1.503	1.615	1.687
7.0%	2.624	3.387	4.100	4.767		55.5%	1.323	1.494	1.604	1.674
7.5%	2.601	3.349	4.046	4.694		56.0%	1.315	1.484	1.592	1.662
8.0%	2.577	3.312	3.993	4.623		56.5%	1.308	1.475	1.581	1.649
8.5%	2.554	3.276	3.941	4.554		57.0%	1.301	1.466	1.570	1.637
9.0%	2.531	3.240	3.890	4.486		57.5%	1.294	1.457	1.560	1.625
9.5%	2.509	3.204	3.840	4.420		58.0%	1.287	1.447	1.549	1.613
10.0%	2.487	3.170	3.791	4.355		58.5%	1.280	1.439	1.539	1.602
10.5%	2.465	3.136	3.743	4.292		59.0%	1.273	1.430	1.528	1.590
11.0%	2.444	3.102	3.696	4.231		59.5%	1.266	1.421	1.518	1.579
11.5%	2.423	3.070	3.650	4.170		60.0%	1.260	1.412	1.508	1.567
12.0%	2.402	3.037	3.605	4.111		60.5%	1.253	1.404	1.498	1.556
12.5%	2.381	3.006	3.561	4.054		61.0%	1.247	1.395	1.488	1.545
13.0%	2.361	2.974	3.517	3.998		61.5%	1.240	1.387	1.478	1.534
13.5%	2.341	2.944	3.475	3.943		62.0%	1.234	1.379	1.468	1.524
14.0%	2.322	2.914	3.433	3.889		62.5%	1.227	1.371	1.459	1.513
14.5%	2.302	2.884	3.392	3.836		63.0%	1.221	1.362	1.449	1.503
15.0%	2.283	2.855	3.352	3.784		63.5%	1.214	1.354	1.440	1.492
15.5%	2.264	2.826	3.313	3.734		64.0%	1.208	1.347	1.431	1.482
16.0%	2.246	2.798	3.274	3.685		64.5%	1.202	1.339	1.422	1.472
16.5%	2.228	2.770	3.236	3.636		65.0%	1.196	1.331	1.413	1.462
17.0%	2.210	2.743	3.199	3.589		65.5%	1.190	1.323	1.404	1.452
17.5%	2.192	2.716	3.163	3.543		66.0%	1.184	1.316	1.395	1.443
18.0%	2.174	2.690	3.127	3.498		66.5%	1.178	1.308	1.386	1.433
18.5%	2.157	2.664	3.092	3.453		67.0%	1.172	1.301	1.378	1.424
19.0%	2.140	2.639	3.058	3.410		67.5%	1.166	1.293	1.369	1.414
19.5%	2.123	2.613	3.024	3.367		68.0%	1.160	1.286	1.361	1.405
20.0%	2.106	2.589	2.991	3.326		68.5%	1.155	1.279	1.352	1.396
20.5%	2.090	2.564	2.958	3.285		69.0%	1.149	1.272	1.344	1.387
21.0%	2.074	2.540	2.926	3.245		69.5%	1.143	1.265	1.336	1.378
21.5%	2.058	2.517	2.895	3.205		70.0%	1.138	1.258	1.328	1.369
22.0%	2.042	2.494	2.864	3.167		70.5%	1.132	1.251	1.320	1.361
22.5%	2.027	2.471	2.833	3.129		71.0%	1.127	1.244	1.312	1.352
23.0%	2.011	2.448	2.803	3.092		71.5%	1.121	1.237	1.304	1.344
23.5%	1.996	2.426	2.774	3.056		72.0%	1.116	1.230	1.297	1.335
24.0%	1.981	2.404	2.745	3.020		72.5%	1.111	1.224	1.289	1.327
24.5%	1.967	2.383	2.717	2.986		73.0%	1.105	1.217	1.281	1.319
25.0%	1.952	2.362	2.689	2.951		73.5%	1.100	1.210	1.274	1.311
25.5%	1.938	2.341	2.662	2.918		74.0%	1.095	1.204	1.267	1.303
26.0%	1.923	2.320	2.635	2.885		74.5%	1.090	1.198	1.259	1.295
26.5%	1.909	2.300	2.609	2.853		75.0%	1.085	1.191	1.252	1.287
27.0%	1.896	2.280	2.583	2.821		75.5%	1.079	1.185	1.245	1.279
27.5%	1.882	2.260	2.557	2.790		76.0%	1.074	1.179	1.238	1.272
28.0%	1.868	2.241	2.532	2.759		76.5%	1.069	1.172	1.231	1.264
28.5%	1.855	2.222	2.507	2.729		77.0%	1.064	1.166	1.224	1.256
29.0%	1.842	2.203	2.483	2.700		77.5%	1.060	1.160	1.217	1.249
29.5%	1.829	2.185	2.459	2.671		78.0%	1.055	1.154	1.210	1.242
30.0%	1.816	2.166	2.436	2.643		78.5%	1.050	1.148	1.204	1.235
30.5%	1.803	2.148	2.412	2.615		79.0%	1.045	1.143	1.197	1.227
31.0%	1.791	2.130	2.390	2.588		79.5%	1.040	1.137	1.190	1.220
31.5%	1.779	2.113	2.367	2.561		80.0%	1.036	1.131	1.184	1.213
32.0%	1.766	2.096	2.345	2.534		80.5%	1.031	1.125	1.177	1.206
32.5%	1.754	2.079	2.324	2.508		81.0%	1.026	1.120	1.171	1.199
33.0%	1.742	2.062	2.302	2.483		81.5%	1.022	1.114	1.165	1.193
33.5%	1.730	2.045	2.281	2.458		82.0%	1.017	1.108	1.158	1.186
34.0%	1.719	2.029	2.260	2.433		82.5%	1.013	1.103	1.152	1.179
34.5%	1.707	2.013	2.240	2.409		83.0%	1.008	1.097	1.146	1.173
35.0%	1.696	1.997	2.220	2.385		83.5%	1.004	1.092	1.140	1.166
35.5%	1.685	1.981	2.200	2.362		84.0%	0.999	1.087	1.134	1.160
36.0%	1.673	1.966	2.181	2.339		84.5%	0.995	1.081	1.128	1.153
36.5%	1.662	1.951	2.162	2.316		85.0%	0.991	1.076	1.122	1.147
37.0%	1.652	1.935	2.143	2.294		85.5%	0.986	1.071	1.116	1.141
37.5%	1.641	1.921	2.124	2.272		86.0%	0.982	1.066	1.111	1.135
38.0%	1.630	1.906	2.106	2.251		86.5%	0.978	1.061	1.105	1.129
38.5%	1.620	1.892	2.088	2.229		87.0%	0.974	1.055	1.099	1.123
39.0%	1.609	1.877	2.070	2.209		87.5%	0.969	1.050	1.094	1.117
39.5%	1.599	1.863	2.052	2.188		88.0%	0.965	1.045	1.088	1.111
40.0%	1.589	1.849	2.035	2.168		88.5%	0.961	1.040	1.082	1.105
40.5%	1.579	1.836	2.018	2.148		89.0%	0.957	1.036	1.077	1.099
41.0%	1.569	1.822	2.001	2.129		89.5%	0.953	1.031	1.072	1.093
41.5%	1.559	1.809	1.985	2.109		90.0%	0.949	1.026	1.066	1.087
42.0%	1.549	1.795	1.969	2.091		90.5%	0.945	1.021	1.061	1.082
42.5%	1.540	1.782	1.953	2.072		91.0%	0.941	1.016	1.056	1.076
43.0%	1.530	1.769	1.937	2.054		91.5%	0.937	1.012	1.050	1.071
43.5%	1.521	1.757	1.921	2.036		92.0%	0.933	1.007	1.045	1.065
44.0%	1.512	1.744	1.906	2.018		92.5%	0.930	1.002	1.040	1.060
44.5%	1.502	1.732	1.890	2.000		93.0%	0.926	0.998	1.035	1.054
45.0%	1.493	1.720	1.876	1.983		93.5%	0.922	0.993	1.030	1.049
45.5%	1.484	1.707	1.861	1.966		94.0%	0.918	0.989	1.025	1.044
46.0%	1.475	1.695	1.846	1.949		94.5%	0.914	0.984	1.020	1.039
46.5%	1.467	1.684	1.832	1.933		95.0%	0.911	0.980	1.015	1.033
47.0%	1.458	1.672	1.818	1.917		95.5%	0.907	0.975	1.010	1.028
47.5%	1.449	1.660	1.804	1.901		96.0%	0.903	0.971	1.006	1.023
48.0%	1.441	1.649	1.790	1.885		96.5%	0.900	0.967	1.001	1.018
48.5%	1.432	1.638	1.776	1.870		97.0%	0.896	0.962	0.996	1.013
49.0%	1.424	1.627	1.763	1.854		97.5%	0.893	0.958	0.992	1.008
49.5%	1.416	1.616	1.750	1.839		98.0%	0.889	0.954	0.987	1.003
50.0%	1.407	1.605	1.737	1.824		98.5%	0.885	0.950	0.982	0.999
						99.0%	0.882	0.946	0.978	0.994
						99.5%	0.878	0.942	0.973	0.989
						100.0%	0.875	0.938	0.969	0.984
						If off the chart use 100%