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chasing a second chocolate dipping machine in order to expand their business. The information Splendid has accumu Annuity of $1 table Future Value of $1

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chasing a second chocolate dipping machine in order to expand their business. The information Splendid has accumu Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Requirements he new machine: ree decimal plac at pres 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on net initial investment (assume straight-line depreciation) 2. What other factors should Splendid Candy consider in deciding whether to purchase the new machine? Print Done pha C uidte uipping HUIUIU CApallu Lilon vor . FTOHURTIGUU PIGUI e av able Future Value of $1 table Future Value of Annuity of $1 table i Data Table ne: lac Cost of the machine Increased contribution margin Life of the machine Required rate of return $90,000 $17,000 10 years 10 % Splendid estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts. Print Done

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