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HW Score E21-22 (similar to) Stupendous Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Stupendous

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HW Score E21-22 (similar to) Stupendous Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Stupendous has accumulated regarding the new machine (Cick the icon to view the information) Present Value of $1 table Present Value of Anu S1 Future Value S e Eu Amo Sable Requirement 1. Calculate the following for the new machine a. Nel present value (NPV) (Usafadors to three decimal places, Xocx, and use a minus sign or protheses for a negative not presente. Enter the net present of the investment rounded to the nearest whole dar) The nel present value is $ 38 319 b. Payback period (Round your wer to two decimal places) The payback period 20 years c. Discounted payback period Round intera ctions to the whole dollar Round The discounted payback period d. men from found the two decim os. XXC The Internal rate of reum (IRR) En ny number in the ed a nd then click Check Awe 2 Check Answer ping machine in order to expand their business. The information Stupendous has accumulate of $1 table Future Value of Annuity of $1 table Data Table Cost of the machine Increased contribution margin Life of the machine Required rate of retum $130,000 $25,000 8 years 4 Stupendous 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 Clear All

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