Delicious Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Delicious has accumulated regarding the new machine is: (Click the icon to view the information.) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the following for the new machine: a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is - Data table Cost of the machine $90,000 Increased annual contribution margin $22,000 Life of the machine 8 years Required rate of return 6% Delicious estimates it will be able to produce more candy using the second machine and thus increase its annual contribution margin. It also estimates 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. Requirements 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation) 2. What other factors should Delicious Candy consider in deciding whether to purchase the new machine? Print Done Reference 224 245 26% 18% 0.647 0.718 8% 0.020 0.867 0.794 0.735 0.681 0.630 0.583 0609 0.51 0423 0540 0.204 Present Value of $1 Periods 2% 4% Period 1 000 0062 Period 2 0.961 0.025 Period 3 0.042 0.880 Period 4 0.924 0.855 Period 5 0.906 0.622 Period 6 0.888 0.790 Period 7 0.871 0.760 Period 8 0.853 0.731 Period 90.837 0.703 Period 10 0820 0.676 Period 11 0.804 0.650 Period 12 0.78 0.625 Period 13 0.773 0.601 Period 14 0.758 0.577 Period 15 0.743 0.556 Period 16 0.728 0.534 Period 17 0714 0.513 Period 18 0.700 0.494 Period 19 0.686 0.475 Period 20 0.673 0.458 Period 21 0.660 Period 22 0.647 0.422 Period 23 0.634 0.406 Period 24 0.622 0.390 Period 25 0.610 0.375 Period 26 0.598 0.361 Period 27 0.588 0.347 Period 28 0.574 0.333 6% 0.045 0.800 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0460 0.442 0417 0.394 0.371 0.350 0.331 0.312 0.294 0.278 0.262 0.247 0.233 0.220 0.207 0.196 0.500 0463 0.429 0.397 0.368 0.340 0.315 0.292 0.270 0.250 0.232 0.215 0.199 0.184 0.170 0.158 0.148 0,135 0.125 0.116 10% 0.000 0.820 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0356 0.350 0.319 0.200 0.263 0.239 0.218 0.198 0.180 0.164 0.149 0.135 0.123 0.112 0.102 0.092 0.084 0.078 0.069 12% 0.800 0.797 0.712 0.630 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.220 0.205 0.183 0.163 0.140 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.053 0.047 0.042 14% 0.877 0.700 0.675 0.592 0.519 0.456 0.400 0.351 0308 0270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.064 0.050 0.049 0.043 0.038 0.033 0.029 0.026 16% 0.862 0.743 0.641 0.552 0478 0.410 0.354 0.305 0.263 0.227 0.195 0.158 0.145 0.125 0.108 0.093 0080 0.009 0 000 0.051 0.044 0.038 0.033 0.028 0.024 0.021 0.018 0.016 0.437 0.370 0.314 0266 0.225 0 191 0.162 0.137 0.116 0.000 0.084 0.071 0.060 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.011 0.010 20% 0.833 0.620 0.00 0.604 0.672 0.000 0.570 0551 0.524 0.482 0451 0 402 0.370 0.341 0335 0.303 0.275 0.279 0.249 0 222 0.233 0.179 194 0.167 0.164 0.182 0.137 0.110 0.135 0.112 0.00 0.112 0.092 0.076 0.003 0.075 0.061 0.078 0.062 0.040 0.005 0.051 0.040 0.054 0.042 0032 0.045 0.034 0.020 0.038 0.028 0.021 0.001 0.023 0.017 0.020 0.019 0.014 0.022 0.015 0.011 0.018 0.013 0 000 0.015 0.010 0.007 0.013 0.008 0.006 0.010 0.007 0.005 0009 0.006 0.004 0.007 0.005 0.003 0.005 0.004 0.002 0,704 0.630 0.500 0.397 0.315 0.250 0.198 0.157 0.125 0.000 0,079 0.062 0.050 0.039 0.031 0.025 0.020 0.016 0.012 0.010 0.008 0.008 0.005 0.004 0.003 0.002 0.002 0.002 20% 0.781 0.610 0.477 0.373 0.291 0227 0.178 0.139 0.108 0.085 ODGE 0052 0.010 0.03 0.025 0.019 0.015 0.012 0.000 0.007 0.006 0.004 0.003 0.003 0.002 0.002 0.001 0.001 30% 0.700 0.502 0.456 0.350 0.260 0207 0.15 0.125 0.004 0.073 0.056 0.043 0.033 0.025 0.020 0.015 0.012 0.000 0.00T 0.005 0.004 0.003 0.002 0.002 0.001 0.001 0.001 0.001 32% 40% Periode 0.750 0.714 Period 0.694 0.510 Perioda 0.436 0.364 Period 0.320 0.260 Period 4 0.250 0.106 Periods 0.180 0.133 Period 0.143 0,095 Period 0.108 0,068 Period 0.082 0.048 Period 9 0.062 0.035 Period 10 0.047 0.025 Period 11 0.036 0.018 Period 12 0.027 0.013 Period 13 0.021 0.009 Period 14 0.016 0.005 Period 15 0.012 0.005 Period 16 0.000 0.003 Period 17 0.007 0.002 Period 18 0.005 0.002 Period 10 0.004 0.001 Period 20 0.003 0,001 Period 21 0.002 0.001 Period 22 0.002 0.000 Period 23 0.001 0.000 Period 24 0.001 0 000 Period 25 0.001 0.000 Period 26 0.001 0.000 Period 27 0.000 0.000 Period 20 0.439 Reference 3.990 14% 0,877 1,647 2322 2.914 3.433 3.880 4.288 4.639 4 946 5216 5.453 5.880 Present Value of Annuity of $1.00 in Arrears Periods 2% 4% 6% 8% 10% Period 1 0.990 0.902 0.943 0.920 0.900 Period 2 1.942 1.886 1.833 1.783 1.736 Period 3 2884 2.775 2.673 2577 2487 Period 4 3.800 3.630 3.465 3.312 3.170 Period 5 4.713 4.452 4.212 3.791 Period 6 5.601 5.242 4.917 4.623 4.355 Period 7 6.472 6.002 5.582 5.200 4.868 Period 8 7325 6.733 6.210 5747 5.335 Period 9 8.162 7.435 6.802 6 247 5.750 Period 10 8.983 8.111 7.380 6.710 6.145 Period 11 9.787 8.760 7.887 7.130 6.495 Period 12 10.575 9,385 8.384 7.536 6814 Period 13 11.348 9.986 8.853 7 904 7.103 Period 14 12 106 10.583 0.295 8.244 7.367 Period 15 12.849 11.118 9.712 8.569 7.606 Period 16 13.578 11.652 10.106 8.851 7.824 Period 17 14.292 12.106 10.477 9.122 8.022 Per 18.14.982 12.659 10.128 9.372 3.201 Period 19 15.678 13.134 11.158 9.604 8.305 Period 20 16,361 13.500 11.470 9.818 8.514 Period 21 17.011 14.029 11.764 10.017 8.849 Period 22 17.658 14.451 12.042 10.201 8.772 Period 23 18.292 14.857 12.303 10.371 8.883 Period 24 18.914 15 247 12.550 10.529 8.985 Period 25 19.523 15,622 12.783 10,675 9.077 Period 26 20.121 15.983 13 003 10.810 9.161 Period 27 20.707 16 330 13.211 10.935 9.237 Period 28 21 281 16.663 13.406 11.051 9.307 12% 0.893 1.690 2.402 3.037 3.805 4.111 4.564 4.968 5.328 5.660 5.938 6.14 6.424 6.628 6.811 6.074 7.120 7.250 7.300 7.460 7.562 7.645 7.718 7.784 7.843 7.896 7.943 7.954 5.842 6.002 6.142 0.265 6.373 6.467 6550 6523 6.887 6.743 6.792 6.835 16% 0862 1.805 2240 2.738 3.274 3.685 4.039 434 4.607 4833 5.020 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5929 5973 6.011 6.044 6.073 6.007 6.118 6.136 6.152 18% 0.847 1.566 2174 2890 3.127 3.490 3.812 4.078 4,303 4.494 4.656 4.790 4.910 5.000 5.092 5.162 5.222 5.273 5.316 5.353 5.384 5.410 5.432 5.451 5.467 5.480 5.492 5502 20% 0.635 1.528 2.100 2.589 2.001 3.326 3.805 3.837 4,031 4.102 4327 4430 4.533 4.811 4.675 4,730 4.775 4,812 4.843 4.870 4.891 4. SO 4926 4.937 4946 4.956 4.964 4.970 22% 0.820 1492 2042 2494 2.864 3.167 3.410 3.619 3.786 3.923 4035 4,127 4,203 4 265 4.315 4.357 4.391 4419 4.442 4.460 4.476 4488 4490 4507 4.514 4.520 4.524 4.528 24% 28% 0.806 0.794 1.457 1.424 1.981 1.923 2404 2.320 2.745 2.636 3.020 2.885 3.242 3.083 3.421 3.241 3,566 3.366 3.662 3.465 3.776 3.543 3.851 3.600 3.912 3.656 3.962 3.696 4.001 3.720 4,033 3.751 4.050 3.771 4.OBO 3.786 4.097 3.790 4.110 3.808 4.121 3.810 4.130 3.822 4.137 3.827 4.143 3.831 4.147 3834 4.151 3837 4.154 3.839 4.157 3.340 28% 30% 0.781 0.700 1.392 1.361 1.865 1816 2241 2.166 2512 2430 2759 2643 2.937 2.802 3.070 2.925 3.184 3.010 3.260 3.092 3.335 3.147 3.387 3.100 3.427 3.223 3.450 3.240 3.483 3.268 3.503 3.263 3.518 3.205 3.520 3.304 3.639 3311 3.546 3.316 3.561 3.320 3.556 3.323 3.550 3.325 3.502 3.327 3.564 3.320 3.500 3.390 3.567 3.331 3.560 3.331 32% 40% Perioda 0.758 0.714 Period 1 1,331 1.224 Period 2 1.700 1.589 Period 3 2.096 1.840 Period 4 2.345 2035 Period 5 2534 2.568 Period 2677 2.283 Period 7 2.780 2.331 Perioda 2.868 2.370 Period 9 2.930 2.414 Period 10 2.978 2.438 Period 11 3.013 2.450 Period 12 3.040 2469 Period 13 3.001 2.478 Period 14 3.076 2.484 Period 15 3.058 2489 Period 10 3.097 2.492 Period 17 3.104 2.404 Period 18 3.100 2.496 Period 19 3.113 2.497 Period 20 3.116 2498 Period 21 3.118 2.408 Period 22 3.120 2499 Period 23 3.121 2409 Period 24 3.122 2.490 Period 25 3.123 2500 Period 26 3.123 2500 Period 27 3.124 2500 Period 20 6.873 0.906 6.935 6.961 Dann Reference 10% 10% 20% 1.574 1811 20% 120 1.600 2007 264 3.4% 4.300 5.620 7200 9223 11.00 3291 13T 20% 200 sas 2.000 2.520 3.178 4.002 5.042 6.350 8.005 100 12.00 16.012 20.175 2541 32030 40350 50.051 04.072 0731 101721 128.100 161452 203.480 25638 23.045 407.COT 512867 548 212 Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% B% Period 1 1.020 1.040 12% 14% 1.000 1080 15100 1120 22% 24% 140 Period 2 1.040 1.002 1.124 15100 1.160 7100 1210 1.254 1220 1200 1.300 1240 1.340 Period 3 1061 1.125 1.392 1.191 1.440 1.260 1.331 1400 1.480 1.42 1.538 1.561 Period 4 1.052 1.170 1.643 1.262 1.360 1.720 1464 1816 1.689 1.907 Period 5 1.104 1.217 1.999 1.338 1.400 2014 2215 1.011 1 72 1.925 2364 2.100 Period 1.125 1265 2288 1.419 1 587 1.772 1994 2.700 2932 2.105 2436 2.700 Perlod 7 1.1401316 2.900 1.504 1.714 1.940 2211 2.500 2826 3.185 3.53 Period 8 1.172 1.300 1.594 4.023 1.851 2.144 2470 2.853 3278 3.750 4300 Period 1.105 1423 400 5.500 1.650 1.900 2.358 2.773 3.252 303 4435 5.07 5.160 6031 Period 10 1.210 1.450 1.791 2.150 2.51 3.100 3707 4411 5234 6.192 7305 8.594 Period 11 1.243 1.530 1.800 2332 3479 4220 5.117 6.170 7430 8.912 10.657 Period 12 1.260 1.601 2012 2518 3.138 3.800 4.810 800 7.280 8010 10.872 13215 Period 13 1.294 1665 2.133 2.720 3.452 43 6.000 8.5 10.600 13.204 16:30 Period 14 1.319 1.732 2.261 2037 3.797 4,887 6261 7980 10.147 12800 16.162 20310 Period 15 1.348 1.801 2.397 3.172 4 177 5.474 7.130 9266 11 974 15.407 19.142 25.190 Period 16 1.373 1.873 2540 3420 4 505 6.130 8.137 10.740 14.129 18.450 24.08 31.243 Period 17 1400 1.48 2.600 3.700 5.054 8.800 9.270 12468 16,672 22.166 2014 38741 Period 18 1428 2026 2014 3.000 SO 7.000 10.675 14463 19 673 26.623 35 549 4803 Period 19 1457 2.107 3.026 4 316 8.613 12.056 16.777 23 214 31.948 49.7 Period 20 1.486 2.101 3.207 4.561 6.727 9.65 13.743 19.461 27393 38300 53358 73.14 Period 21 1.516 2279 3.400 5034 7.400 10.804 15.668 22574 32 324 46005 65.000 91.502 Period 22 1.546 2370 3.604 5.437 8.140 12.100 17.801 25.185 38.142 55200 70418 Period 23 1.577 2465 3.820 5.871 8.954 13.552 20.302 30376 45000 66.247 06. 940.831 Period 24 1.000 2.583 4049 9.850 15.179 23212 352 6341 63.100 174631 79.497 118205 Period 25 1 641 2666 4.292 6.848 10.835 17.000 26.462 40874 62.600 95 396 144 210 216.542 Period 26 1.673 2772 4.549 7.39611.918 19.040 30.167 47414 73.1949 114 475 175.86 20.512 Period 27 1.707 2.683 4822 7.900 13.110 21 325 34.300 55.000 87 260 137.371 214.642 333.955 Period 28 1.741 2.999 5.112 8.627 14.421 23 384 39 204 63.600 102.567 164.845 281.864 412854 334 30% 32 1,500 1320 1.000 1.742 2107 2300 2856 3.036 3.713 DOT 4827 5290 6275 6.083 3.157 9.217 10.604 12.100 18000 17.992 21.100 23.700 270 2020 3932 51.100 64.350 60.542 84054 M504 112.130 112.455 148034 146.199 05391 100 000 25791 2470 0.440 321.154 440.399 417530 5030 542 01 7303 705 641 1033.590 017333 10 119.535 TRO 1560 280 2377224 48.757 40% Periods 1400 Period 1.300 Period 2744 Period 3.042 Parede 5.378 Peres 7.500 Period 10 10 11 Pure 147 Period 20601 28.35 Pene 40.400 Per 11 56.64 Period 70 371 Period 13 111.120 Period 14 Period 15 217.700 Period 10 Period 17 428.579 Period 10 SOT 630 Perted to 3663 Perled 20 1171 355 Period 21 1600 Period 22 2205 57 Period 23 3214.200 Period 24 440 880 Period 25 620801 Period 20 8819.754 Period 27 2367670 Period 20 10.45 24750 31.691 40565 51.823 66.461 8501 108 800 130 380 1708 228.00 299 300 314144 47505 612.990 784638 10043 155.00 30413 193.874 Print Done Us Reference he 3640 3708 30% 1000 2.300 3.900 617 0.045 12.756 17.500 32% 1 000 2320 40 6.32 9.00 13.400 18.00 Tren Pwede pre 25.678 22.670 26.12 35.662 Compound Amount of Amuly of 51.00 in Arrears (Future Value of Anul Periods2% 4% 6% 10% 12% 16% 16% 18%20% 22 24% Period 1 1.000 1.000 1.000 1.000 1.000 26% 28% 1.000 1000 1000 1.000 1.000 1000 1.000 Period 2 2020 2040 2000 2080 2.100 1.000 1.000 2120 2.140 2.160 2.180 2200 Period 3 3.060 3122 3.1843246 3310 3.374 2220 2.240 2200 2200 3.440 3.500 3572 3.778 Period 4 4.122 4.246 4375 4.500 4.641 3.846 3918 4.779 4.921 5.000 5215 5.300 5.524 5.614 5.840 8.016 Period 5 5.204 5.416 5.637 5.867 6.105 0.353 0.610 6.877 7.154 7442 7.740 8.04 0.30 8.700 Period 6 6 308 6.633 6.975 7336 7.716 8.115 8.530 89779442 9.930 10.442 10.900 11.544 12130 Period 7 7434 7.898 8394 8.9239.487 10.089 10.730 11414 12 142 12.910 13.740 14,615 15 546 16 534 Period 8 8.583 9.214 9.897 10.637 11436 12300 13.233 14 240 15 327 16.490 17.762 10.123 20 22.163 Period 9.755 10.583 11 491 12.488 13.579 14.776 16.085 17 519 19 086 20.799 2640 28.369 Period 10 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25 950 28.657 31642 34.945 38.590 Period 11 12.169 13.485 14.972 10.645 18.531 20.655 23.045 25.733 28.755 32.150 402 45.001 50 Period 12 13.412 15.028 16.870 18 977 21 394 24.133 27 271 30 850 34931 39.581 44874 50.000 57.730 65510 Period 13 14.680 16.627 18.882 21.495 24 523 26.020 32.089 36786 4221948.407 55746 14.110 73.751 AN 34.53 Period 14 15 974 18 292 21 015 24 215 27 975 32 393 37 581 43.672 50.818 50.196 69010 30.490 93.26 109.612 05.192 119347 141300 Period 15 17 293 20.024 23.276 27.152 31.772 37 280 43.842 51.660 60.965 72.035 67 442 Period 16 18.630 21.825 25.673 30 324 35 950 42.753 50.980 50 925 72.939 104935 126.011 151377 18 157250 120.020 Period 17 20.012 23.698 28213 39.750 40 545 48.884 79.118 71.673 87.058 105.901 191736 230.701 158.405 195 904 202.45 Period 18 21 412 25.645 30.906 37 450 45.599 55.750 68.394 84.541 103.740 128. 117 300232 104254 305.661 385323 Period 19 22.841 27 671 33.760 41.446 51.159 63.440 78.96990.603 123.414 154.740 237.900 303.001 38730 494215 Period 20 24 297 29.778 36.786 45.782 57 275 72 052 91.025 116 380 166.08 186.686 377.466 49.110 633 503 Period 21 25780 31.000 39.903 50.423 64.002 61.699 104.768 14.841 174,021 225.025 617 278 811 Period 22 27 290 34 248 43.392 55.457 71.403 92 503 120.436 157415 206.345 271.031 435661 582.630 778771 350 Period 23 28.845 38 618 48.906 60.903 70.545 104.600 138 207 183.601 244.487 328 237 $32.750 723401 982251 1332650 Period 24 30.422 30.083 50.816 66.765 68 497 118.155 158650 213.978 289.494 392.454 08.09 123831701 Period 25 32 030 41.646 54.5 73.106 9837 133 334 181.871 249.214 32.609 475.51 195.165 1561 62 2185708 Period 26 33 671 44312 50.156 70.054 109.182 150,334 208.333 290088 405272 567.377 1583.146 108719 2708 700 Period 27 35 344 47,064 63.700 87351 121.100 169.374 238.499 337502 479 221 661.853 971102 Period 28 37051 49968 68 528 95 330 134 210 190.699 272.889 392 03 566.481 819 223 1185.744 1716 101 2481,500 583 344 32.015 42.610 56.400 74327 0725 12793 16721 218.472 285 014 SIN 371 518 405 Periode 16 P1 2430 Period 40 Perled 7104 Period 1066 Period: 10.94 16 2389 Pod 7 340 Pad 49 Pere 09.14 PO Panade 08730 130235 14 +3820 Period 275300 Part Period Pas 306.00 Period 541 10 11 700.74 12 100400 Period 1491 ST Pened Period 11 Period 22 57371 Period 23 Period bos 24 110 Period 35 16 Paried 28 22014810 Perted 3. Period 20 34.88 47.062 63.122 w 54320 112 303 540 240 107.907 20230 347.300 450.400 807412 1023 1000.773 40 0622 100815 248.633 18391 10 165 620215 Prod 291MY 356.643 2010 2010 2005 20020 400.000 4067300 464 101203 1040 243.821 650.055 10.000 234803 305444 3071 5164311 322 44 4200 434 5624 772 11144 75.000 Print Done Check on