E21-22 (similar to) Question Help Fabulous Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Fabulous has accumulated regarding the new machine is (Click the icon to view the information.) (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Present Value of $1 factors.) (Click the icon to view the Future Value of Annuity of $1 factors.) (Click the icon to view the Present Value of Annuity of $1 factors.) 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 S b. Payback period (Round your answer to two decimal places.) The payback period is C. Discounted payback period (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, XXX%.) The discounted payback period is d. Internal rate of return (Round the rate to two decimal places, XXX%.) The internal rate of return (IRR) e. Accrual accounting rate of return based on net initial investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places. X.XX%.) The accrual accounting rate of return (AARR) is 15,570 5.29 years 6.57 years is 10.22 %. % based on net initial investment Data Table Requirements 1. Calculate the following for the new machine a. Net present value b. Payback period c. Discounted payback period d. Intenal rate of return (using the interpolation method) e. Accrual accounting rate of return based on net initial investment (assume $90,000 $17,000 Cost of the machine Increased contribution margin Life of the machine Required rate of return 8 years 6% Fabulous 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. straight-line depreciation) 2. What other factors should Fabulous Candy consider in deciding whether to purchase the new machine? Print Done PrintDone