Need solutions for questions 22.01 through 22.07.
Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a
cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker.
He has priced a machine at a national member only warehouse for $1,850. The machine should be
usable for 4 years, after which it would be inefficient, obsolete and would have to be disposed of at the
dump. Big Al believes that 10 cans a day will be purchased. The plant is open five days a week, 50
weeks per year. A case of soda (24 cans) costs $6.48 and Big Al believes that a price of $.60 per
can would win him good will.
	What is the estimated annual sales in cans of soda?
										{22.01}
	What is the contribution margin per can of soda? (rounded to five places, $#.#####)
										{22.02}
	How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans)
										{22.03}
	Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##)
										{22.04}
	What is the payback period in years? (rounded to two places, #.## years)
										{22.05}
	If the time value of money is 12% per year what is the net present value? Use the tables on page 23.
										{22.06}
	What is the internal rate of return. Pick the closest interest rate from the tables on page 23.
										{22.07}