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Homework: HW 9 - Chapter 21 Save Score: 25 of 50 pts 11 of 11 (11 complete) HW Score: 75%, 75 of 100 pts %E21-22

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Homework: HW 9 - Chapter 21 Save Score: 25 of 50 pts 11 of 11 (11 complete) HW Score: 75%, 75 of 100 pts %E21-22 (similar to) Question Help 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: B (Click to Present Val i Data Table Future Valu Read the re Requireme Cost of the machine Increased contribution margin Life of the machine Required rate of return $90,000 $17,000 8 years 10 % a. Net pres negative ne pses for a llar.) The net pre 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 Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Book1 swer 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)

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