Current Attempt in Progress Swifty Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $115.000 for the machine which was state of the art at the time of purchase. Although the machine will likely tast another ten years, it will need a $9,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 15.000 frames per year, generating a total contribution margin of $112.500 Martson Molders currently sells a molding machine that will allow Switty Pix to increase production and sales to 20,000 trames per year. The machine, which has a ten year life, sells for $150,000 and would cost $12,000 per year to operate Swifty Pixs current machine cists only $8,000 per year to operate. If Swifty 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 $20,000 at the end of its ten-year Iife Swifty Pix uses straight-line depreciation Click here to view the factor table (a) (b) Use Excel or a similar spreadsheet application to calculate the new machines internal rate of return (Round answer to 2 decimal places, es 1.25%) Internal rate of return APPENDIX 9.2 Present value of an annuity of $i per period. Periods 4% 59 1 2 3 4 5 0.9615 1.8861 2.7751 3.6299 4.4518 0.9524 1.8594 2.7232 3.5460 4.3295 6% 0.9434 1.8334 2.6730 3.4651 4.2124 7% 89 99 10% 0.9346 0.9259 0.9174 0.9091 1.SOSO 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 11% 125 0.009 0.8929 1.7125 1.6901 2.4437 24018 3.1024 3.0373 3.6959 3,6018 13% 1496 16% 18% 20% 0.8850 0.8772 0.8621 0.8475 0.8333 1.6681 16467 1.6052 1.5656 1.5278 223612 2.3216 2.2459 2.1743 2.1065 29745 29137 2.7982 2.6901 2.5887 3.5172 34331 3.2743 3.1272 2.9906 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 4.6229 4.48594.3553 5.3893 5.2064 3.0330 4.8684 5.9713 5.7466 5.5348 5.3349 6.51526.2469 5.9952 5.7590 7.0236 6.7101 64177 6.1446 42305 4.1114 3.9975 3.8887 4.7122 45638 4.4226 4.2883 5.1461 49676 4.7988 4.6389 5.5370 5.3282 5.1317 49464 5.8892 5.6502 5.4262 5.2161 3.6847 3.4976 3.3255 40386 3.8115 3.6045 43436 40776 3.8372 46065 4.3030 4.0310 48332 4.4941 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 83577 7.9038 74869 7.1034 8.7455 8.2442 7.7862 7.3667 9.10798 5595 8.0607 7.6061 6.2065 6.4924 6.7499 6.9819 7.1909 5.9377 5.6869 5.4527 61944 5.9176 56603 6.4235 6.1218 5.8424 6,6282 63025 6.0021 68109 6.4624 6.1422 5.0286 4.6560 4.3271 5.1971 4.7932 4.4392 5.3423 4.9095 4.5327 54625 5.0081 4.6106 5575550916 4.6755 7.3792 7.5488 7.2016 7.8393 7.9633 69740 7.1196 7.2497 7.3658 7.4694 66039 6.2651 6.7291 63729 68399 6.4674 69390 65504 70248 66231 16 17 18 19 20 5.6685 51624 4.7296 5.7487 52221 4.7746 5.8178 5273248122 5.8775 53162 48435 5.9288 5.3527 4.8696 11.6523 10.8378 10.1059 9.4466 8.8514 8.3126 7.8237 12.1657 11.2741 10.4773 9.7632 9.1216 8 5436 80216 12.6593 11.6896 10.8276 10.0591 9.3719 8.7556 8.2014 13.1339 120853 11.1581 10.3356 9.6036 89501 8 3669 13.5903 124622 11.4699 10.5940 9.8181 9.1285 8 5136 1 $1- (1+) PVA APPENDIX 9.1 Present value of $1 received in n periods 4% 5% 6% 9% 10% Periods 1 2 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 7% 0.9346 0.8734 0.8163 0.7629 0.7130 89 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.8412 0.7722 0.7084 0.6499 0.9091 0.8264 0.7513 0.6830 0.6209 11 0.9009 0.8116 0.7312 0.6587 0.5935 12% 13% 14% 16 1848 20% 0.8929 0.8850 0.8772 0.8621 0.8475 08333 0.7972 0.7831 0.7695 0.7432 0.7182 06944 0.7118 0.6931 0.6750 06407 0.6086 0.5782 0.6355 0.6133 0.5921 0:5523 0.5158 0.4823 0.5674 0.5428 0.5194 0476104371 0.0019 6 7 S 9 10 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7050 0.6663 0.7107 0.6651 0.6227 0.6768 0.6274 0.5820 0.6446 0.5919 0.5439 0.6139 0.5584 0.5083 0.6302 0.5835 0.5403 0.5002 0.4632 0.5963 0.5470 0.5019 0.4604 04224 0.5645 0.5346 05066 0.4803 0.4556 04104 03704 0.3349 0.5132 0.4817 0.4523 0.4251 0.3996 0.3538 0.3139 0.2792 0.4665 0.4339 0.4039 0.3762 0.3506 0.3050 0.2660 0.2126 04241 0.3909 0.3606 0.3329 0.3075 0.2630 0.2255 0.1938 0.3855 0.3522 0.3220 0.2946 0.2697 0.2267 0.1911 0.1615 11 12 13 14 15 0.6496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5268 0.4751 0.556804970 0.4440 0.5303 0.4688 0.4150 0.5051 0.4423 0.3878 0.4810 0.4173 0.3624 0.4289 0.3971 0.3677 0.3405 0.3152 0.3875 0.3505 03555 0.3186 0.3262 0.2897 0.2992 0.2633 0.2745 0.2394 0.3173 0.2875 0.2607 02366 0.1954 01619 0.1346 0.2858 0.2567 0.2307 0.2076 0.1685 0.1372 0.1122 0.2575 0.2292 0.2042 0.1821 0.1452 0.1163 0.0935 0.2320 0.2016 0.1807 0.1597 0.1252 0,0985 0.0779 0 2090 0.1827 0.1599 014010.1079 0.0835 0.0619 16 17 18 19 20 0.5339 0.5134 0.4936 0.4746 0.4564 $1 (1+1) 04581 0.4363 0.4155 0.3957 0,3769 0.3936 0.3714 0.3503 0.3305 0.3118 0.3387 0.2919 0.2519 0.2176 0 1883 0.1631 0.1415 0.122900930 0.0708 0.0541 0.3166 0.2703 0.2311 0.1978 0.1696 0.1456 0.1252 0.1078 0.0002 0.0600 0.0451 0.2959 0.2502 0.2120 0.1799 0.1528 0.13000.1108 0.0946 0.0691 0.0508 0.0376 0.2765 0.2317 0.1945 0.1635 0.1377 0.1161 0.0981 0.0829 0.0596 00431 0.0313 0.2584 0.2145 0.1784 0.1486 0.1240 0.1037 00868 0.0728 0.0514 0.0365 0.0261 PV- (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) Your answer is incorrect. . Calculate the new machine's payback period. (Round answer to 2 decimal places, e.g. 1.25.) Payback period e Textbook and Media (a) a Calculate the new machine's net present value assuming a 16% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Net present value $ e Textbook and Media