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Burlington Cola is considering the purchase of a special-purpose bottling machine for $28,000. It is expected to have a useful life of 4 years with

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Burlington Cola is considering the purchase of a special-purpose bottling machine for $28,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs: g (Click the icon to view the savings in cash operating costs.) Burlington Cola uses a required rate of retum of 20% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash ows occur at year-end except for initial investment amounts. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the reguirements. 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is $ (1,997) g 2. Payback period. (Round your answer to two decimal places.) The number of years for the payback period is 2-67 . 3. Discounted payback period. 4' A. Amount can not be determined B. 3.68 C. 3.61 D. 3.67 4. Internal rate of return (using the interpolation method). (Use a trial-and-error approach and straight-line interpolation as necessary. Round your answer to the nearest hundredth of a percent, X.XX%.) The internal rate of return (IRR) is %. 0 Data Table Year Amount Year 1 $ 12,000 Year 2 10,000 Enter any number in the edit elds and then click Check Answer. Year 3 9,000 c pan . _ ' Clear All A Year 4 $ 3:22: H 4 p remalnlng , Total . if

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