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Eastem Cola is considering the purchase of a special-purpose botting machine for $70,000 it is expected to have a useful lite of 4 years with

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Eastem Cola is considering the purchase of a special-purpose botting machine for $70,000 it is expected to have a useful lite of 4 years with no terminal disposal valie. Ithe plaati manager estimates the folowing savings in cash operating costs. (Csick the ioca to vow the savings in cash operating costs) Eastern Cola uses a required rate of return of 20% in its capital budgeting dectsions ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial. ievestrnerit amounts Read the teguiements Requirements 1. Net present value (Use tactor arbounts rounder Calculate the followag for the special purpose bottling machine. present valing.) 1. Net present valuin The nat presant value h 2. Payback period 3. Discoueted payback pediod 4. Intemal rate of return (oring the interpolation method) 5. Accrual accounting rate of retum based on not initlal investrient (Assume straghitine depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.) Data table Reference

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