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 $2,000. 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 8 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $5.76 and Big Al believes that a price of $.80 per can would win him good will.

Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##)

What is the payback period in years? (rounded to two places, #.## years)

If the time value of money is 12% per year what is the net present value? .

What is the internal rate of return.