list Question 1 Question 2 Requirements K machine is: Magnificent Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Magnificent has accumulated regarding the new (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 Data table 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of retum (using the interpolation method) e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation) 2. What other factors should Magnificent Candy consider in deciding whether to purchase the new machine? Cost of the machine Increased annual contribution margin $90,000 $19,000 Life of the machine Required rate of return 8 years 4% Magnificent estimates it will be able to produce more candy using the second machine and thus increase its annual contribution margin. It also estimates 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 Print Done - x Check answer Reference - Present Value of $1 Periods 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 40% Periods Period 1 0.980 0.962 0.943 0.926 0.909 Period 2 0.961 0.925 0.890 0.857 0.893 0.826 0.797 0.847 Period 3 0.942 Period 4 0.924 Period 5 0.906 Period 6 0.888 0.889 0.840 0.794 0.855 0.792 0.822 0.747 0.790 Period 7 0.871 0.760 Period 8 0.853 Period 9 0.837 Period 10 0.820 0.731 0.703 0.627 0.592 0.500 0.676 Period 11 0.804 Period 12 0.788 Period 13 0.773 Period 14 0.758 0.558 0.463 0.650 0.527 0.429 0.350 0.625 0.497 0.397 0.319 0.601 0.469 0.368 0.290 0.577 0.735 0.681 0.621 0.705 0.630 0.564 0.665 0.583 0.513 0.540 0.467 0.424 0.386 0.442 0.340 0.263 Period 15 0.743 0.555 0.417 0.315 0.239 Period 16 0.728 0.534 0.394 0.292 0.218 Period 17 0.714 0.513 0.371 0.270 0.198 Period 18 0.700 0.494 0.350 0.250 0.060 0.051 Period 19 0.686 0.475 0.331 0.232 0.043 Period 20 0.673 0.456 0.312 0.215 0.037 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 0.044 0.031 0.877 0.862 0.769 0.743 0.718 0.694 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.683 0.636 0.592 0.552 0.516 0.482 0.451 0.567 0.519 0.476 0.437 0.402 0.370 0.341 0.315 0.507 0.456 0.410 0.370 0.335 0.303 0.275 0.250 0.452 0.400 0.354 0.314 0.279 0.249 0.222 0.198 0.178 0.404 0.351 0.305 0.266 0.233 0.204 0.179 0.157 0.139 0.361 0.308 0.263 0.225 0.194 0.167 0.144 0.125 0.108 0.094 0.082 0.322 0.270 0.227 0.191 0.162 0.137 0.116 0.099 0.085 0.073 0.287 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.257 0.208 0.168 0.137 0.112 0.092 0.076 0.062 0.052 0.043 0.036 0.229 0.182 0.145 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.027 0.205 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.183 0.140 0.108 0.084 0.065 0.051 0.040 0.031 0.025 0.020 0.016 0.163 0.123 0.093 0.071 0.054 0.042 0.032 0.025 0.019 0.015 0.146 0.108 0.080 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.180 0.130 0.095 0.069 0.038 0.028 0.021 0.016 0.012 0.009 0.007 0.164 0.116 0.083 0.060 0.031 0.023 0.017 0.012 0.009 0.007 0.005 0.149 0.104 0.073 0.051 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.294 0.199 0.135 0.093 0.064 0.022 0.015 0.011 0.008 0.006 0.004 0.003 0.278 0.184 0.123 0.083 0.056 0.038 0.026 0.018 0.013 0.009 0.006 0.004 0.003 0.002 0.262 0.170 0.112 0.074 0.049 0.033 0.022 0.015 0.010 0.007 0.005 0.003 0.002 0.002 0.247 0.158 0.102 0.066 0.043 0.028 0.019 0.013 0.008 0.006 0.004 0.003 0.002 0.001 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.007 0.005 0.003 0.002 0.001 0.001 0.220 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.002 0.002 0.833 0.820 0.806 0.794 0.781 0.769 0.758 0.714 Period 1 0.672 0.650 0.630 0.610 0.592 0.574 0.510 Period 2 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 0.423 0.397 0.373 0.350 0.329 0.260 Period 4 0.291 0.269 0.250 0.186 Period 5 0.227 0.207 0.189 0.133 Period 6 0.159 0.143 0.095 Period 7 0.123 0.108 0.068 Period 8 0.048 Period 9 0.062 0.035 Period 10 0.047 0.025 Period 11 0.018 Period 12 0.013 0.009 Period 14 Period 13 0.006 Period 15 0.012 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 0.001 0.001 0.000 Period 26 Print Done Reference Present Value of Annuity of $1.00 in Arrears* Periods Period 1 0.980 2% 4% 6% 8% 10% 12% 14% 0.962 0.943 0.926 0.909 0.893 Period 2 1.942 1.886 1.833 1.783 1.736 1.690 Period 3 2.884 2.775 2.673 2.577 2.487 2.402 Period 4 3.808 3.630 3.465 3.312 3.170 Period 5 4.713 4.452 4.212 3.993 Period 6 5.601 5.242 Period 7 6.472 6.002 Period 8 7.325 6.733 Period 9 8.162 Period 10 8.983 7.435 8.111 Period 11 9.787 8.760 Period 12 10.575 9.385 8.384 7.536 Period 13 11.348 9.986 8.853 7.904 7.103 Period 14 12.106 10.563 9.295 8.244 Period 15 12.849 11.118 9.712 8.559 7.606 6.811 Period 16 13.578 11.652 Period 17 14.292 12.166 10.106 8.851 7.824 6.974 6.265 10.477 9.122 8.022 7.120 Period 18 14.992 12.659 Period 19 15.678 13.134 10.828 9.372 8.201 7.250 11.158 9.604 8.365 7.366 Period 20 16.351 13.590 11.470 9.818 8.514 7.469 Period 21 17.011 14.029 11.764 10.017 8.649 7.562 6.687 Period 22 17.658 14.451 12.042 10.201 8.772 7.645 Period 23 18.292 14.857 Period 24 18.914 15.247 Period 25 19.523 15.622 Period 26 20.121 15.983 10.371 16% 18% 20% 22% 24% 26% 28% 30% 32% 0.877 0.862 0.847 0.833 0.820 0.806 0.794 0.781 0.769 0.758 1.647 1.605 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.331 2.322 2.246 2.174 2.106 2.042 1.981 1.923 1.868 1.816 1.766 3.037 2.914 2.798 2.690 2.589 2.494 2.404 2.320 2.241 2.166 2.096 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.635 2.532 2.436 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 3.167 3.020 2.885 2.759 2.643 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 3.416 3.242 3.083 2.937 2.802 2.677 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 3.619 3.421 3.241 3.076 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 3.786 3.566 3.366 3.184 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.682 3.465 3.269 3.092 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.776 3.543 3.335 3.147 6.814 6.194 5.660 5.197 4.793 4.439 4.127 3.851 3.606 3.387 6.424 5.842 5.342 4.910 4.533 4.203 3.912 3.656 3.427 7.367 6.628 6.002 5.468 5.008 4.611 4.265 3.962 3.695 3.459 6.142 5.575 5.092 4.675 4.315 4.001 3.726 3.483 5.668 5.162 4.730 4.357 4.033 3.751 3.503 3.283 6.373 5.749 5.222 4.775 4.391 4.059 3.771 3.518 3.295 3.097 6.467 5.818 5.273 4.812 4.419 4.080 3.786 3.529 3.304 3.104 6.550 5.877 5.316 4.843 4.442 4.097 3.799 3.539 3.311 3.109 6.623 5.929 5.353 4.870 4.460 4.110 3.808 3.546 3.316 5.973 5.384 4.891 4.476 4.121 3.816 3.551 6.743 6.011 5.410 4.909 4.488 4.130 12.303 8.883 7.718 6.792 6.044 5.432 4.925 4.499 4.137 12.550 10.529 8.985 7.784 6.835 6.073 5.451 4.937 4.507 4.143 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 4.514 4.147 13.003 10.810 9.161 7.896 6.906 6.118 5.480 4.956 4.520 4.151 3.837 3.566 40% Periods 0.714 Period 1 1.224 Period 2 1.589 Period 3 1.849 Period 4 2.345 2.035 Period 5 2.534 2.168 Period 6 2.263 Period 7 2.925 2.786 2.331 Period 8 3.019 2.868 2.379 Period 9 2.930 2.414 Period 10 2.978 2.438 Period 11 3.190 3.013 2.456 Period 12 3.268 3.223 3.249 3.061 3.076 3.040 2.469 Period 13 2.478 Period 14 2.484 Period 15 3.088 2.489 2.492 Period 16 Period 17 2.494 Period 18 3.113 2.496 2.497 Period 20 Period 19 3.320 3.116 2.498 Period 21 3.822 3.556 3.323 3.118 2.498 Period 22 3.827 3.831 3.834 3.559 3.562 3.327 3.121 3.564 3.329 3.122 3.330 3.123 3.325 3.120 2.499 Period 23 2.499 Period 24 2.499 Period 25 2.500 Period 26 Print Done Reference Compound Amount of $1.00 (The Future Value of $1.00) - X Periods 2% 4% Period 1 1.020 1.040 Period 2 1.040 1.082 Period 3 1.061 1.125 6% 1.060 1.124 1.191 8% 10% 12% 1.080 1.100 1.120 1.166 1.210 1.254 14% 1.140 16% 18% 20% 1.160 1.180 1.200 22% 24% 26% 28% 30% 32% 40% Periods 1.220 1.240 1.260 1.280 1.300 1.320 1.400 Period 1 1.300 1.346 1.392 1.440 1.488 1.538 1.588 1.638 1.690 1.742 1.960 Period 2 Period 4 1.082 1.170 1.262 1.360 1.464 1.260 1.331 1.405 1.574 1.482 1.561 1.643 1.728 1.816 1.907 2.000 2.097 2.197 2.300 2.744 Period 3 1.689 1.811 1.939 2.074 2.215 2.364 2.520 2.684 2.856 3.036 3.842 Period 4 Period 5 1.104 1.217 Period 6 1.126 1.265 2.100 2.288 2.488 2.700 2.986 Period 7 1.149 1.316 Period 8 1.172 1.369 Period 9 1.195 1.423 Period 10 1.219 1.480 Period 11 1.243 1.539 Period 12 1.268 1.601 Period 13 1.294 1.665 Period 14 1.319 1.732 Period 15 1.346 1.801 Period 16 1.373 1.873 Period 17 1.400 1.948 3.185 3.583 3.759 4.300 4.435 5.160 Period 18 1.428 2.026 Period 19 1.457 2.107 2.261 2.397 2.540 2.693 2.854 3.026 Period 20 1.486 2.191 Period 21 1.516 2.279 Period 22 1.546 2.370 Period 23 1.577 2.465 Period 24 1.608 2.563 Period 25 1.641 2.666 Period 26 1.673 2.772 73.949 1.338 1.469 1.611 1.762 1.925 1.419 1.587 1.772 1.974 2.195 2.436 1.504 1.714 1.949 2.211 2.502 2.826 1.594 1.851 2.144 2.476 2.853 3.278 1.689 1.999 2.358 2.773 3.252 3.803 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 10.872 13.215 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 13.264 16.386 2.937 3.797 4.887 6.261 7.988 10.147 12.839 16.182 20.319 3.172 4.177 5.474 7.138 9.266 11.974 15.407 19.742 3.426 4.595 6.130 8.137 10.748 14.129 18.488 24.086 3.700 5.054 6.866 9.276 12.468 16.672 22.186 29.384 3.996 5.560 7.690 10.575 14.463 19.673 26.623 35.849 48.039 4.316 6.116 8.613 12.056 16.777 23.214 31.948 43.736 59.568 80.731 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 53.358 73.864 101.721 3.400 5.034 7.400 10.804 15.668 22.574 32.324 46.005 65.096 91.592 128.169 3.604 5.437 8.140 12.100 17.861 26.186 38.142 55.206 79.418 113.574 161.492 228.360 321.184 449.393 3.820 5.871 8.954 13.552 20.362 30.376 45.008 66.247 96.889 140.831 203.480 292.300 417.539 593.199 4.049 6.341 9.850 15.179 23.212 35.236 53.109 79.497 118.205 174.631 256.385 374.144 542.801 783.023 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 144.210 216.542 323.045 478.905 705.641 1033.590 4.549 7.396 11.918 19.040 30.167 47.414 114.475 175.936 268.512 407.037 612.998 917.333 1364.339 6299.831 2.703 2.932 3.176 3.436 3.713 4.007 5.378 Period 5 3.297 3.635 4.002 4.398 4.827 5.290 7.530 Period 6 4.023 4.508 5.042 5.629 6.275 6.983 10.541 Period 7 4.908 5.590 6.353 7.206 8.157 9.217 14.758 Period 8 5.987 6.931 8.005 9.223 10.604 12.166 20.661 Period 9 7.305 8.594 10.086 11.806 13.786 16.060 28.925 Period 10 8.912 10.657 12.708 15.112 17.922 21.199 40.496 Period 11 16.012 19.343 23.298 27.983 56.694 Period 12 20.175 24.759 30.288 36.937 79.371 Period 13 25.421 31.691 39.374 48.757 111.120 Period 14 25.196 32.030 40.565 51.186 64.359 155.568 Period 15 31.243 40.358 51.923 66.542 84.954 217.795 Period 1 38.741 50.851 66.461 86.504 112.139 304.913 Period 17 64.072 85.071 112.455 148.024 426.879 Period 18 108.890 146.192 195.391 597.630 Period 19 139.380 190.050 257.916 836.683 Period 20 178.406 247.065 340.449 1171.356 Period 21 1639.898 Period 22 2295.857 Period 23 3214.200 Period 24 4499.880 Period 25 Period 26 Print Done