Divine Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Divine 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 b. Payback period (Round your answer to two decimal places.) The payback period in years is c. Discounted payback period (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX.) The discounted payback period in years is d. Internal rate of return (Round the rate to two decimal places, X.XX%.) The internal rate of return (IRR) is %. e. Accrual accounting rate of return based on the net initial investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.) Based on the net initial investment, the accrual accounting rate of return (AARR) is %. Requirement 2. What other factors should Divine consider in deciding whether to purchase the new machine? (Select all that apply.) A. The costs of training and other "hidden" start-up costs are included in the estimated $120,000 cost of the new machine. B. Issues related to the financing of the project, and the availability of capital to pay for the machine. C. The upheaval of installing a new computer system. Its useful life is estimated to be 8 years. This means that Divine could face this upheaval again in 8 years. D. The effect of the system on employee morale. E. The benefits of the new machine for customers. Reference 12% 0.893 1.690 2.402 3.037 3.605 5.242 4.917 4.355 4.111 Present Value of Annuity of $1.00 in Arrears* Periods 2% 4% 6% 8% 10% Period 1 0.980 0.962 0.943 0.926 0.909 Period 2 1.942 1.886 1.833 1.783 1.736 Period 3 2.884 2.775 2.673 2.577 2.487 Period 4 3.808 3.630 3.465 3.312 3.170 Period 5 4.713 4.452 4.212 3.993 3.791 Period 6 5.601 4.623 Period 7 6.472 6.002 5.582 5.206 4.868 Period 8 7.325 6.733 6.210 5.747 5.335 Period 98.162 7.435 6.802 6.247 5.759 Period 10 8.983 8.111 7.360 6.710 6.145 Period 11 9.787 8.760 7.887 7.139 6.495 Period 12 10.575 9.385 8.384 7.536 6.814 Period 13 11.348 9.986 8.853 7.904 7.103 Period 14 12.106 10.563 9.295 8.244 7.367 Period 15 12.849 11.118 9.712 8.559 7.606 Period 16 13.578 11.652 10.106 8.851 7.824 Period 17 14.292 12.166 10.477 9.122 8.022 Period 18 14.992 12.659 10.828 9.372 8.201 Period 19 15.678 13.134 11.158 9.604 8.365 Period 20 16.351 13.590 11.470 9.818 8.514 Period 21 17.011 14.029 11.764 10.017 8.649 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 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 Period 29 21.844 16.984 13.591 11.158 9.370 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 14% 0.877 1.647 2.322 2.914 3.433 3.889 4.288 4.639 4.946 5.216 5.453 5.660 5.842 6.002 6.142 6.265 6.373 6.467 6.550 6.623 6.687 6.743 6.792 6.835 6.873 6.906 6.935 6.961 6.983 16% 0.862 1.605 2.246 2.798 3.274 3.685 4.039 4.344 4.607 4.833 5.029 5.197 5.342 5.468 5.575 5.668 5.749 5.818 5.877 5.929 5.973 6.011 6.044 6.073 6.097 6.118 6.136 6.152 6.166 18% 0.847 1.566 2.174 2.690 3.127 3.498 3.812 4.078 4.303 4.494 4.656 4.793 4.910 5.008 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 5.502 5.510 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.843 4.870 4.891 4.909 4.925 4.937 4.948 4.956 4.964 4.970 4.975 22% 0.820 1.492 2.042 2.494 2.864 3.167 3.416 3.619 3.786 3.923 4.035 4.127 4.203 4.265 4.315 4.357 4.391 4.419 4.442 4.460 4.476 4.488 4.499 4.507 4.514 4.520 4.524 4.528 4.531 24% 0.806 1.457 1.981 2.404 2.745 3.020 3.242 3,421 3.566 3.682 3.776 3.851 3.912 3.962 4.001 4.033 4.059 4.080 4.097 4.110 4.121 4.130 4.137 4.143 4.147 4.151 4.154 4.157 4.159 26% 0.794 1.424 1.923 2.320 2.635 2.885 3.083 3.241 3.366 3.465 3.543 3.606 3.656 3.695 3.726 3.751 3.771 3.786 3.799 3.808 3.816 3.822 3.827 3.831 3.834 3.837 3.839 3.840 3.841 28% 30% 0.781 0.769 1.392 1.361 1.868 1.816 2.241 2.166 2.532 2.436 2.759 2.643 2.937 2.802 3.076 2.925 3.184 3.019 3.269 3.092 3.335 3.147 3.387 3.190 3.427 3.223 3.459 3.249 3.483 3.268 3.503 3.283 3.518 3.295 3.529 3.304 3.539 3.311 3.546 3.316 3.551 3.320 3.556 3.323 3.559 3.325 3.562 3.327 3.564 3.329 3.566 3.330 3.567 3.331 3.568 3.331 3.569 3.332 32% 0.758 1.331 1.766 2.096 2.345 2.534 2.677 2.786 2.868 2.930 2.978 3.013 3.040 3.061 3.076 3.088 3.097 3.104 3.109 3.113 3.116 3.118 3.120 3.121 3.122 3.123 3.123 3.124 3.124 40% Periods 0.714 Period 1 1.224 Period 2 1.589 Period 3 1.849 Period 4 2.035 Period 5 2.168 Period 6 2.263 Period 7 2.331 Period 8 2.379 Period 9 2.414 Period 10 2.438 Period 11 2.456 Period 12 2.469 Period 13 2.478 Period 14 2.484 Period 15 2.489 Period 16 2.492 Period 17 2.494 Period 18 2.496 Period 19 2.497 Period 20 2.498 Period 21 2.498 Period 22 2.499 Period 23 2.499 Period 24 2.499 Period 25 2.500 Period 26 2.500 Period 27 2.500 Period 28 2.500 Period 29 7.250 7.366 7.469 7.562 7,645 7.718 7.784 7.843 7.896 7.943 7.984 8.022 Print Done - Reference Compound Amount of Annuity of $1.00 in Arrears* (Future Value of Annuity) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 22.020 2.040 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 Period 3 3.060 3.122 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.122 4.246 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.204 5.416 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.308 6.633 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 7 7.434 7.898 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 Period 8 8.583 9.214 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 9 9.755 10.583 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 Period 10 10.950 12.006 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 12.169 13.486 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 13.412 15.026 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 Period 13 14.680 16.627 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 Period 14 15.974 18.292 21.015 24.215 27.975 32.393 37.581 43.672 50.818 59.196 Period 15 17.293 20.024 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 Period 16 18.639 21.825 25.673 30.324 35.950 42.753 50.980 60.925 72.939 87.442 Period 17 20.012 23.698 28.213 33.750 40.545 48.884 59.118 71.673 87.068 105.931 Period 18 21.412 25.645 30.906 37.450 45.599 55.750 68.394 84.141 103.740 128.117 Period 19 22.841 27.671 33.760 41.446 51.159 63.440 78.969 98.603 123.414 154.740 Period 20 24.297 29.778 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 Period 21 25.783 31.969 39.993 50.423 64.002 81.699 104.768 134.841 174.021 225.026 Period 22 27.299 34.248 43.392 55.457 71.403 92.503 120.436 157.415 206.345 271.031 Period 23 28.845 36.618 46.996 60.893 79.543 104.603 138.297 183.601 244.487 326.237 Period 24 30.422 39.083 50.816 66.765 88.497 118.155 158.659 213.978 289.494 392.484 Period 25 32.030 41.646 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 26 33.671 44.312 59.156 79.954 109.182 150.334 208.333 290.088 405.272 567.377 Period 27 35.344 47.084 63.706 87.351 121.100 169.374 238.499 337.502 479.221 681.853 Period 28 37.051 49.968 68.528 95.339 134.210 190.699 272.889 392.503 566.481 819.223 Period 29 38.792 52.966 73.640 103.966 148.631 214.583 312.094 456.303 669.447 984.068 22% 1.000 2.220 3.708 5.524 7.740 10.442 13.740 17.762 22.670 28.657 35.962 44.874 55.746 69.010 85.192 104.935 129.020 158.405 194.254 237.989 291.347 356.443 435.861 532.750 650.955 795.165 971.102 1185.744 1447.608 24% 1.000 2.240 3.778 5.684 8.048 10.980 14.615 19.123 24.712 31.643 40.238 50.895 64.110 80.496 100.815 126.011 157.253 195.994 244.033 303.601 377.465 469.056 582.630 723.461 898.092 1114.634 1383.146 1716.101 2128.965 26% 1.000 2.260 3.848 5.848 8.368 11.544 15.546 20.588 26.940 34.945 45.031 57.739 73.751 93.926 119.347 151.377 191.735 242.585 306.658 387.389 489.110 617.278 778.771 982.251 1238.636 1561.682 1968.719 2481.586 3127.798 28% 1.000 2.280 3.918 6.016 8.700 12.136 16.534 22.163 29.369 38.593 50.398 65.510 84.853 109.612 141.303 181.868 233.791 300.252 385.323 494.213 633.593 811.999 1040.358 1332.659 1706.803 2185.708 2798.706 3583.344 4587.680 30% 1.000 2.300 3.990 6.187 9.043 12.756 17.583 23.858 32.015 42.619 56.405 74.327 97.625 127.913 167.286 218.472 285.014 371.518 483.973 630.165 820.215 1067.280 1388.464 1806.003 2348.803 3054.444 3971.778 5164.311 6714.604 32% 1.000 2.320 4.062 6.362 9.398 13.406 18.696 25.678 34.895 47.062 63.122 84.320 112.303 149.240 197.997 262.356 347.309 459.449 607.472 802.863 1060.779 1401.229 1850.622 2443.821 3226.844 4260.434 5624.772 7425.699 9802.923 40% 1.000 2.400 4.360 7.104 10.946 16.324 23.853 34.395 49.153 69.814 98.739 139.235 195.929 275.300 386.420 541.988 759.784 1064.697 1491.576 2089.206 2925.889 4097.245 5737.142 8032.999 11247.199 15747.079 22046.910 30866.674 43214.343 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 Period 16 Period 17 Period 18 Period 19 Period 20 Period 21 Period 22 Period 23 Period 24 Period 25 Period 26 Period 27 Period 28 Period 29 Print Done Reference Compound Amount of $1.00 (The Future Value of $1.00) Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% Period 1 1.020 1.040 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.220 1.240 1.260 Period 2 1.040 1.082 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.488 1.538 1.588 Period 3 1.061 1.125 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.816 1.907 2.000 Period 4 1.082 1.170 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 2.215 2.364 2.520 Period 5 1.104 1.217 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 2.703 2.932 3.176 Period 6 1.126 1.265 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 3.297 3.635 4.002 Period 7 1.149 1.316 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 4.023 4.508 5.042 Period 8 1.172 1.369 1,594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 4.908 5.590 6.353 Period 9 1.195 1.423 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 5.987 6.931 8.005 Period 10 1.219 1.480 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 7.305 8.594 10.086 Period 11 1.243 1.539 1.898 2.332 2.853 3.479 4.228 5.117 6.176 7.430 8.912 10.657 12.708 Period 12 1.268 1.601 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 10.872 13.215 16.012 Period 13 1.294 1.665 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 13.264 16.386 20.175 Period 14 1.319 1.732 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 16.182 20.319 25.421 Period 15 1.346 1.801 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 19.742 25.198 32.030 Period 16 1.373 1.873 2.540 3,426 4.595 6.130 8.137 10.748 14.129 18.488 24.086 31.243 40.358 Period 17 1.400 1.948 2.693 3.700 5.054 6.866 9.276 12.468 16.672 22.186 29.384 38.741 50.851 Period 18 1.428 2.026 2.854 3.996 5.560 7.690 10.575 14.463 19.673 26.623 35.849 48.039 64.072 Period 19 1.457 2.107 3.026 4.316 6.116 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 Period 20 1.486 2.191 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 Period 21 1.516 2.279 3.400 5.034 7.400 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 Period 22 1.546 2.370 3.604 5.437 8.140 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 Period 23 1.577 2.465 3.820 5.871 8.954 13.552 20.362 30.376 45.008 66.247 96.889 140.831 203.480 Period 24 1.608 2.563 4.049 6.341 9.850 15.179 23.212 35.236 53.109 79.497 118.205 174.631 256.385 Period 25 1.641 2.666 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 144.210 216.542 323.045 Period 26 1.673 2.772 4.549 7.396 11.918 19.040 30.167 47.414 73.949 114.475 175.936 268.512 407.037 Period 27 1.707 2.883 4.822 7.988 13.110 21.325 34.390 55.000 87.260 137.371 214.642 332.955 512.867 Period 28 1.741 2.999 5.112 8.627 14.421 23.884 39.204 63.800 102.967 164.845 261.864 412.864 646.212 Period 29 1.776 3.119 5.418 9.317 15.863 26.750 44.693 74.009 121.501 197.814 319.474 511.952 814.228 28% 1.280 1.638 2.097 2.684 3.436 4.398 5,629 7.206 9.223 11.806 15.112 19.343 24.759 31.691 40.565 51.923 66.461 85.071 108.890 139.380 178.406 228.360 292.300 374.144 478.905 612.998 784.638 1004.336 1285.550 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 8.157 10.604 13.786 17.922 23.298 30.288 39.374 51.186 66.542 86.504 112.455 146.192 190.050 247,065 321.184 417.539 542.801 705.641 917.333 1192.533 1550.293 2015.381 32% 40% Periods 1.320 1.400 Period 1 1.742 1.960 Period 2 2.300 2.744 Period 3 3.036 3.842 Period 4 4.007 5.378 Period 5 5.290 7.530 Period 6 6.983 10.541 Period 7 9.217 14.758 Period 8 12.166 20.661 Period 9 16.060 28.925 Period 10 21.199 40.496 Period 11 27.983 56.694 Period 12 36.937 79.371 Period 13 48.757 111.120 Period 14 64.359 155.568 Period 15 84.954 217.795 Period 16 112.139 304.913 Period 17 148.024 426.879 Period 18 195.391 597.630 Period 19 257.916 836.683 Period 20 340.449 1171.356 Period 21 449.393 1639.898 Period 22 593.199 2295.857 Period 23 783.023 3214.200 Period 24 1033.590 4499.880 Period 25 1364.339 6299.831 Period 26 1800.927 8819.764 Period 27 2377.224 12347.670 Period 28 3137.935 17286.737 Period 29 Print Done Reference Present Value of $1 Periods 2% 4% Period 1 0.980 0.962 Period 2 0.961 0.925 Period 3 0.942 0.889 Period 4 0.924 0.855 Period 5 0.906 0.822 Period 6 0.888 0.790 Period 7 0.871 0.760 Period 8 0.853 0.731 Period 9 0.837 0.703 Period 10 0.820 0.676 Period 11 0.804 0.650 Period 12 0.788 0.625 Period 13 0.773 0.601 Period 14 0.758 0.577 Period 15 0.743 0.555 Period 16 0.728 0.534 Period 17 0.714 0.513 Period 18 0.700 0.494 Period 19 0.686 0.475 Period 20 0.673 0.456 Period 21 0.660 0.439 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 0.586 0.347 Period 28 0.574 0.333 Period 29 0.563 0.321 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 0.527 0.497 0.469 0.442 0.417 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 0.185 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 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 0.146 0.135 0.125 0.116 0.107 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.350 0.319 0.290 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 0.076 0.069 0.063 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.093 0.083 0.074 0.066 0.059 0.053 0.047 0.042 0.037 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.123 0.108 0.095 0.083 0.073 0.064 0.056 0.049 0.043 0.038 0.033 0.029 0.026 0.022 16% 0.862 0.743 0.641 0.552 0.476 0.410 0.354 0.305 0.263 0.227 0.195 0.168 0.145 0.125 0.108 0.093 0.080 0.069 0.060 0.051 0.044 0.038 0.033 0.028 0.024 0.021 0.018 0.016 0.014 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 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 0.008 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 0.022 0.018 0.015 0.013 0.010 0.009 0.007 0.006 0.005 22% 0.820 0.672 0.551 0.451 0.370 0.303 0.249 0.204 0.167 0.137 0.112 0.092 0.075 0.062 0.051 0.042 0.034 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.004 0.003 24% 0.806 0.650 0.524 0.423 0.341 0.275 0.222 0.179 0.144 0.116 0.094 0.076 0.061 0.049 0.040 0.032 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.002 26% 0.794 0.630 0.500 0.397 0.315 0.250 0.198 0.157 0.125 0.099 0.079 0.062 0.050 0.039 0.031 0.025 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.001 28% 0.781 0.610 0.477 0.373 0.291 0.227 0.178 0.139 0.108 0.085 0.066 0.052 0.040 0.032 0.025 0.019 0.015 0.012 0.009 0.007 0.006 0.004 0.003 0.003 0.002 0.002 0.001 0.001 0.001 30% 0.769 0.592 0.455 0.350 0.269 0.207 0.159 0.123 0.094 0.073 0.056 0.043 0.033 0.025 0.020 0.015 0.012 0.009 0.007 0.005 0.004 0.003 0.002 0.002 0.001 0.001 0.001 0.001 0.000 32% 0.758 0.574 0.435 0.329 0.250 0.189 0.143 0.108 0.082 0.062 0.047 0.036 0.027 0.021 0.016 0.012 0.009 0.007 0.005 0.004 0.003 0.002 0.002 0.001 0.001 0.001 0.001 0.000 0.000 40% Periods 0.714 Period 1 0.510 Period 2 0.364 Period 3 0.260 Period 4 0.186 Period 5 0.133 Period 6 0.095 Period 7 0.068 Period 8 0.048 Period 9 0.035 Period 10 0.025 Period 11 0.018 Period 12 0.013 Period 13 0.009 Period 14 0.006 Period 15 0.005 Period 16 0.003 Period 17 0.002 Period 18 0.002 Period 19 0.001 Period 20 0.001 Period 21 0.001 Period 22 0.000 Period 23 0.000 Period 24 0.000 Period 25 0.000 Period 26 0.000 Period 27 0.000 Period 28 0.000 Period 29 Print Done