Concord Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is

considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants

will cost $$275,400.$ In addition, Austin estimates that the new machine will increase the company's annual net cash flows by $$50,800.$

The machine will have a $12-$year useful life and no salvage value.

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$(a)$

Correct Answer

Your answer is correct.

Calculate the cash payback period. $($Round answer to $2$ decimal places, e$.$g$.15\mathrm{.}21.)$

Cash payback period

years

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Solution

Attempts: $1$ of $1$ used

$($b$)$

Calculate the machine's internal rate of return.

Internal rate of return

$\%$

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