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Bramble Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $ 88,000 for the machine, which was state of

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Bramble Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $ 88,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $ 12.000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 11,000 frames per year, generating a total contribution margin of $ 85,500. Martson Molders currently sells a molding machine that will allow Bramble Pix to increase production and sales to 15,000 frames per year. The machine, which has a ten-year life, sells for $ 131,000 and would cost $ 12,000 per year to operate. Bramble Pix's current machine costs only $ 8,000 per year to operate. If Bramble Pix purchases the new machine, the old machine could be sold at its book value of $ 5,000. The new machine is expected to have a salvage value of $ 19,500 at the end of its ten-year life. Bramble Pix uses straight-line depreciation. Click here to view the factor table, (a) X Your answer is incorrect. Calculate the new machine's net present value assuming a 14% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Net present value $ 414352 x Your answer is incorrect. Use Excel or a similar spreadsheet application to calculate the new machine's internal rate of return. (Round answer to 2 decimal places, e.g. 1.25%.) Internal rate of return 80 % eTextbook and Media Save for Later Attempts: 2 of 3 used Submit Answer (c) X Your answer is incorrect. Calculate the new machine's payback period. (Round answer to 2 decimal places, e.g. 1.25.) Payback period 1.25 years

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