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(Click the icon to view the information.) Present Value of $1 table Read the requirements. Data table Requirement 1. Calcul a. Net present value (N
(Click the icon to view the information.) Present Value of $1 table Read the requirements. Data table Requirement 1. Calcul a. Net present value (N to the nearest whole do The net present value Divine 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. present value. Enter the net present value of the investment rounded Divine Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Divine has accumulated regarding the new machine is: (Click the icon to view the information.) Present Value of $1 table Read the requirements. Requirements Requirement 1. Calcul . Net present value (N 1. Calculate the following for the new machine: a. Net present value present value. Enter the net present value of the investment rounded b. Payback period The net present value i 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 Divine Candy consider in deciding whether to purchase the new machine
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