- Data table Cost of the machine $90,000 Increased contribution margin $24,000 Life of the machine 8 years Required rate of return 8% Heavenly 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 Heavenly Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Heavenly has accumulated regarding the new machine is Click the icon to view the information) Present Value st 1 table Present Value of Annuiteet1 tatis Future Valuest talle Future Values Annetcotiable Read the mos a Requirement 1. Calculate the following for the new machine 2. Not present vakve (NPV) (Use factors to Stroe decimal places. X.XXX and use a mina sign et parentheses for a negative niet present value. Eriter the net present value of the Investment rounded to the nearest whole dolar) The net present values b. Payback perlad Pound your answer to two decimal places) The payback period in years is c. Discounted payback period Round interim calculations to the rest whole dolur. Round the rate to wo dechat prices. XXX) The discounted payback period in years is d. Internal rate of return (Round the rate to two decimal places, XXX%) The Internal rate of retum (IRR) is 6. Accrual accounting rate of return based on net intial investment Cound interim calculations to the nearest whole dolur Round the late to two decimal places, XXX%> Based on net initialement the accrual accounting rate of room (AAR) Requirement 2 What other factors should Heavenly consider in deciding whether to purchase the new machine? Select all that apply) A. The upheaval of installing a new computer system. Its useful fo is estimated to be yours. This means that Heavenly could face this upheaval again in 8 years B. The effect of the system on employee morale C. Issues related to se financing of the project and the availability of capital to pay for the system. D. The benefits of the new system for customers The cost of training and other niddan start-up costs are included in the estimated 590.000 cost of the new machine