Current Attempt in Progress 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) 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 $ e Textbook and Media (b) 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 % e Textbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (c) Calculate the new machine's payback period. (Round answer to 2 decimal places, e.g. 1.25.) Payback period years e Textbook and Media APPENDIX 9.1 Present value of $1 received in n periods. Periods 4% 5% 6% % 7% 8% 9% 10% 11% 12% 13% 14% 16% 18% 20% 0.8929 0.7972 1 2 3 3 4 5 0.9615 0.9246 0.8890 0.8548 0.8219 0.9524 0.9070 0.8638 0.8227 0.7835 0.9434 0.8900 0.8396 0.7921 0.7473 0.9346 0.8734 0.8163 0.7629 0.7130 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.8417 0.7722 0.7084 0.6499 0.9091 0.8264 0.7513 0.6830 0.6209 0.9009 0.8116 0.7312 0.6587 0.5935 0.7118 0.6355 0.5674 0.8850 0.7831 0.6931 0.6133 0.5428 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.7432 0.6407 0.5523 0.4761 0.8475 0.7182 0.6086 0.5158 0.4371 0.8333 0.6944 0.5787 0.4823 0.4019 0.5066 0.4523 6 7 8 9 10 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7107 0.6768 0.6446 0.6139 0.7050 0.6651 0.6274 0.5919 0.5584 0.6663 0.6227 0.5820 0.5439 0.5083 0.6302 0.5835 0.5403 0.5002 0.4632 0.5963 0.5470 0.5019 0.4604 0.4224 0.5645 0.5132 0.4665 0.4241 0.3855 0.5346 0.4817 0.4339 0.3909 0.3522 0.4039 0.4803 0.4251 0.3762 0.3329 0.2946 0.4556 0.4104 0.3996 0.3538 0.3506 0.3050 0.3075 0.2630 0.2697 0.2267 0.3704 0.3139 0.2660 0.2255 0.1911 0.3349 0.2791 0.2326 0.1938 0.1615 0.3606 0.3220 11 12 13 14 15 0.6496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5268 0.5568 0.4970 0.5303 0.4688 0.5051 0.4423 0.4810 0.4173 0.4751 0.4440 0.4150 0.3878 0.3624 0.4289 0.3971 0.3677 0.3405 0.3152 0.3875 0.3505 0.3555 0.3186 0.3262 0.2897 0.2992 0.2633 0.2745 0.2394 0.3173 0.2858 0.2575 0.2320 0.2090 0.2875 0.2567 0.2292 0.2046 0.1827 0.2607 0.2307 0.2042 0.1807 0.1599 0.2366 0.1954 0.2076 0.1685 0.1821 0.1452 0.1597 0.1252 0.1401 0.1079 0.1619 0.1372 0.1163 0.0985 0.0835 0.1346 0.1122 0.0935 0.0779 0.0649 16 0.5339 0.4581 0.3936 0.3387 0.2919 0.2519 0.2176 17 0.5134 0.4363 0.3714 0.3166 0.2703 0.2311 0.1978 18 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 19 0.4746 0.3957 0.3305 0.2765 0.2317 0.1945 0.1635 20 0.4564 0.3769 0.3118 0.2584 0.2145 0.1784 0.1486 $1 PV = 7,1 (1 + i)" 0.1883 0.1696 0.1528 0.1377 0.1240 0.1631 0.1415 0.1229 0.1456 0.1252 0.1078 0.1300 0.1108 0.0946 0.1161 0.0981 0.0829 0.1037 0.0868 0.0728 0.0930 0.0802 0.0691 0.0596 0.0514 0.0708 0.0600 0.0508 0.0431 0.0365 0.0541 0.0451 0.0376 0.0313 0.0261 APPENDIX 9.2 Present value of an annuity of $1 per period. Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 16% 18% 20% 1 2 3 0.9615 1.8861 2.7751 3.6299 4.4518 0.9524 1.8594 2.7232 3.5460 4.3295 0.9434 1.8334 2.6730 3.4651 4.2124 0.9346 0.9259 0.9174 0.9091 1.8080 1.7833 1.7591 1.7355 2.6243 2.5771 2.5313 2.4868 3.3872 3.3121 3.2397 3.1698 4.1002 3.9927 3.8897 3.7907 0.9009 1.7125 2.4437 3.1024 3.6959 0.8929 1.6901 2.4018 3.0373 3.6048 0.8850 1.6681 2.3612 2.9745 3.5172 0.8772 1.6467 2.3216 2.9137 3.4331 0.8621 1.6052 2.2459 2.7982 3.2743 0.8475 1.5656 2.1743 2.6901 3.1272 0.8333 1.5278 2.1065 2.5887 2.9906 4 5 6 7 8 9 10 5.2421 6.0021 6.7327 7.4353 8.1109 5.0757 5.7864 6.4632 7.1078 7.7217 4.9173 5.5824 6.2098 6.8017 7.3601 4.7665 5.3893 5.9713 6.5152 7.0236 4.6229 5.2064 5.7466 6.2469 6.7101 4.4859 5.0330 5.5348 5.9952 6.4177 4.3553 4.8684 5.3349 5.7590 6.1446 4.2305 4.7122 5.1461 5.5370 5.8892 4.1114 4.5638 4.9676 5.3282 5.6502 3.9975 4.4226 4.7988 5.1317 5.4262 3.8887 4.2883 4.6389 4.9464 5.2161 3.6847 4.0386 4.3436 4.6065 4.8332 3.4976 3.8115 4.0776 4.3030 4.4941 3.3255 3.6046 3.8372 4.0310 4.1925 11 12 13 14 15 8.7605 9.3851 9.9856 10.5631 11.1184 8.3064 8.8633 9.3936 9.8986 10.3797 7.8869 8.3838 8.8527 9.2950 9.7122 7.4987 7.1390 6.8052 6.4951 7.9427 7.5361 7.1607 6.8137 8.3577 7.9038 7.4869 7.1034 8.7455 8.2442 7.7862 7.3667 9.1079 8.5595 8.0607 7.6061 6.2065 6.4924 6.7499 6.9819 7.1909 5.9377 6.1944 6.4235 6.6282 6.8109 5.6869 5.9176 6.1218 6.3025 6.4624 5.4527 5.6603 5.8424 6.0021 6.1422 5.0286 5.1971 5.3423 5.4675 5.5755 4.6560 4.7932 4.9095 5.0081 5.0916 4.3271 4.4392 4.5327 4.6106 4.6755 9.4466 9.7632 10.0591 10.3356 10.5940 16 11.6523 10.8378 10.1059 17 12.1657 11.2741 10.4773 18 12.6593 11.6896 10.8276 19 13.1339 12.0853 11.1581 20 13.5903 12.4622 11.4699 1 $1 (1 + i)" PVA ,,i = i 8.8514 9.1216 9.3719 9.6036 9.8181 8.3126 8.5436 8.7556 8.9501 9.1285 7.8237 8.0216 8.2014 7.3792 7.5488 7.7016 7.8393 7.9633 6.9740 7.1196 7.2497 7.3658 7.4694 6.6039 6.7291 6.8399 6.9380 7.0248 6.2651 6.3729 6.4674 6.5504 6.6231 5.6685 5.7487 5.8178 5.8775 5.9288 5.1624 5.2223 5.2732 5.3162 5.3527 4.7296 4.7746 4.8122 4.8435 4.8696 8.3649 8.5136