Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $1,850. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 10 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 $6.00 and Big Al believes that a price of $.90 per can would win him good will. What is the estil {17.01} What is the contribution marain ner can of soda? (rounded to two blaces. \$\#.\#\#) {17.02} How many cans of soda must be sold each vear to breakeven? (Round uo to zero blaces. \#\#\#.\#\#\# cans) -}{17.03} Annual incremental cash inflows from the soda machine? (rounded to two places, \$\#.\#\#) {17.04} What is the pay {17.05} If the time value of monev is 12% per vear what is the net present value? Use the tables on page 18. {17.06} Present Value of Annuity $1.00 in Arrears \begin{tabular}{|r|r|r|r|r|} \hline Interest & \multicolumn{4}{|c|}{ Periods } \\ \cline { 2 - 5 } Rate & & & & \\ \hline 2.0% & 2.884 & 3.808 & 4.713 & 5.601 \\ \hline 2.5% & 2.856 & 3.762 & 4.646 & 5.508 \\ \hline 3.0% & 2.829 & 3.717 & 4.580 & 5.417 \\ \hline 3.5% & 2.802 & 3.673 & 4.515 & 5.329 \\ \hline 4.0% & 2.775 & 3.630 & 4.452 & 5.242 \\ \hline 4.5% & 2.749 & 3.588 & 4.390 & 5.158 \\ \hline 5.0% & 2.723 & 3.546 & 4.329 & 5.076 \\ \hline 5.5% & 2.698 & 3.505 & 4.270 & 4.996 \\ \hline 6.0% & 2.673 & 3.465 & 4.212 & 4.917 \\ \hline 6.5% & 2.648 & 3.426 & 4.156 & 4.841 \\ \hline 7.0% & 2.624 & 3.387 & 4.100 & 4.767 \\ \hline 7.5% & 2.601 & 3.349 & 4.046 & 4.694 \\ \hline 8.0% & 2.577 & 3.312 & 3.993 & 4.623 \\ \hline 8.5% & 2.554 & 3.276 & 3.941 & 4.554 \\ \hline 9.0% & 2.531 & 3.240 & 3.890 & 4.486 \\ \hline 9.5% & 2.509 & 3.204 & 3.840 & 4.420 \\ \hline 10.0% & 2.487 & 3.170 & 3.791 & 4.355 \\ \hline 10.5% & 2.465 & 3.136 & 3.743 & 4.292 \\ \hline 11.0% & 2.444 & 3.102 & 3.696 & 4.231 \\ \hline 11.5% & 2.423 & 3.070 & 3.650 & 4.170 \\ \hline 12.0% & 2.402 & 3.037 & 3.605 & 4.111 \\ \hline 12.5% & 2.381 & 3.006 & 3.561 & 4.054 \\ \hline 13.0% & 2.361 & 2.974 & 3.517 & 3.998 \\ \hline 13.5% & 2.341 & 2.944 & 3.475 & 3.943 \\ \hline 14.0% & 2.322 & 2.914 & 3.433 & 3.889 \\ \hline 14.5% & 2.302 & 2.884 & 3.392 & 3.836 \\ \hline 15.0% & 2.283 & 2.855 & 3.352 & 3.784 \\ \hline 15.5% & 2.264 & 2.826 & 3.313 & 3.734 \\ \hline 16.0% & 2.246 & 2.798 & 3.274 & 3.685 \\ \hline 16.5% & 2.228 & 2.770 & 3.236 & 3.636 \\ \hline 17.0% & 2.210 & 2.743 & 3.199 & 3.589 \\ \hline 17.5% & 2.192 & 2.716 & 3.163 & 3.543 \\ \hline 18.0% & 2.174 & 2.690 & 3.127 & 3.498 \\ \hline 18.5% & 2.157 & 2.664 & 3.092 & 3.453 \\ \hline 19.0% & 2.140 & 2.639 & 3.058 & 3.410 \\ \hline 19.5% & 2.123 & 2.613 & 3.024 & 3.367 \\ \hline 20.0% & 2.106 & 2.589 & 2.991 & 3.326 \\ \hline 20.5% & 2.090 & 2.564 & 2.958 & 3.285 \\ \hline 21.0% & 2.074 & 2.540 & 2.926 & 3.245 \\ \hline 2.056 & 2.058 & 2.517 & 2.895 & 3.205 \\ \hline & 2.042 & 2.494 & 2.864 & 3.167 \\ \hline & 1.996 & 2.471 & 2.833 & 3.129 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|r|} \hline 46.5% & 1.467 & 1.684 & 1.832 & 1.933 \\ \hline 47.0% & 1.458 & 1.672 & 1.818 & 1.917 \\ \hline 47.5% & 1.449 & 1.660 & 1.804 & 1.901 \\ \hline 48.0% & 1.441 & 1.649 & 1.790 & 1.885 \\ \hline 48.5% & 1.432 & 1.638 & 1.776 & 1.870 \\ \hline 49.0% & 1.424 & 1.627 & 1.763 & 1.854 \\ \hline 49.5% & 1.416 & 1.616 & 1.750 & 1.839 \\ \hline 50.0% & 1.407 & 1.605 & 1.737 & 1.824 \\ \hline \end{tabular} \begin{tabular}{|r|r|r|r|r|} \hline 95.0% & 0.911 & 0.980 & 1.015 & 1.033 \\ \hline 95.5% & 0.907 & 0.975 & 1.010 & 1.028 \\ \hline 96.0% & 0.903 & 0.971 & 1.006 & 1.023 \\ \hline 96.5% & 0.900 & 0.967 & 1.001 & 1.018 \\ \hline 97.0% & 0.896 & 0.962 & 0.996 & 1.013 \\ \hline 97.5% & 0.893 & 0.958 & 0.992 & 1.008 \\ \hline 98.0% & 0.889 & 0.954 & 0.987 & 1.003 \\ \hline 98.5% & 0.885 & 0.950 & 0.982 & 0.999 \\ \hline 99.0% & 0.882 & 0.946 & 0.978 & 0.994 \\ \hline 99.5% & 0.878 & 0.942 & 0.973 & 0.989 \\ \hline 100.0% & 0.875 & 0.938 & 0.969 & 0.984 \\ \hline \end{tabular} If off the chart use 100%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started