only looking for help on problem 22.06. Thank you.

D F 4 B 4 PART 7 14 15 Capital Decision Making 16 17 18 Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a 28 cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker 29 He has priced a machine at a national member only warehouse for $1,850 The machine should be 30 usable for 4 years, after which it would be inefficient, obsolete and would have to be disposed of at the 31 dump. Big Al believes that 10 cans a day will be purchased the plant is open five days a week, 50 32 weeks per year. A case of soda (24 cans) costs $6 24 and Big Al believes that a price of $ 65 per 42 can would win him good will 43 44 What is the estimated annual sales in cans of soda? 45 46 50 10 2500 cans 122011 56 57 What is the contribution margin per can of soda? (rounded to five places $####) 58 24 6.24 0.26 59 0.65 BO 0 28 70 $ 0.99000 (2202) 71 72 How many cans of soda must be sold each year to breakeven? (Round up to zero places #cans) 73 1850 4025 74 118 cans 12203) 85 B6 87 Annual incremental cash inflows from the soda machine? (rounded to two places $ 21 22 Pont Value Tables 5 4 84 19 18 Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a 28 cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker 29 He has priced a machine at a national member only warehouse for $1,850. The machine should be 30 usable for 4 years, after which it would be inefficient, obsolete and would have to be disposed of at the 31 dump. Big Al believes that 10 cans a day will be purchased. The plant is open five days a week, 50 32 weeks per year. A case of soda (24 cans) costs $6 24 and Big Al believes that a price of $.65 per 42 can would win him good will. 43 44 What is the estimated annual sales in cans of soda? 45 46 50 5 2.500 cans 122011 56 57 What is the contribution margin per can of soda? (rounded to five places, $# ##### 58 24 6.24 0.26 59 0.65 60 0.26 0 39000122.02) 10 How many cans of soda must be sold each year to breakeven? (Round up to zero places # cans) 1850 4 462.5 70 71 72 73 74 84 85 B6 87 88 98 99 100 1.186 cans (2203) Annual incremental cash inflows from the soda machine? (rounded to two places, S### Year 1 Year 2 Year 3 Year 4 1625 1625 1625 1625 -850 -650 -850 -650 -1850 -875 975 975 975 1 89 10 11 12 13 15 17 18 18 20 101 12 21 9700 22 23 Present Value Tables Type here to search o 1 402.5 24 34 35 26 87 88 98 1.186 cans 122031 Annual incremental cash inflows from the soda machine? (rounded to two places $1.4) Year 1 Year 2 Year 3 Year 4 1625 1625 1625 1625 -650 650 -650 -650 - 1850 -875 975 975 975 99 $ 975.00 22.04 What is the payback period in years? (rounded to two places, #.## years) Years 4 100 101 102 112 113 114 115 116 126 127 128 129 130 131 132 133 134 -875 975 100 975 1 897435897 1950 1.90 years (22.05) If the time value of money is 12% per year what is the not present value? Use the tables on page 23 975 1296 2050 4 675.0082 0 0 (22.06) Please round to 2 places - 1850 13 136 137 131 What is the internal rate of return Pick the Insest interest rate from the tables on nne 23 10 11 12 1 14 15 16 17 18 20 21 23 Present Value Tables Type here to search B25 2.402 B G D EF Present Value of Annuity $1.00 in Arrears 1 2 3 Interest Periods Interest Periods 4 Rate 3 5 2.096 2 884 6 25% 2.856 7 3.0% 2.829 B 3.5% 2.802 9 4.0% 2.775 10 4.5% 2.749 11 5.0% 2.723 12 5 596 2.698 13 6096 2.673 14 6.5% 2.648 15 7 096 2624 10 75% 2.601 17 8.096 2.577 18 8.5% 2554 19 9.09 2531 20 9.59 2.509 21 10.09 2.487 22 10.5% 2.465 23 11.096 2.444 24 11.599 2.423 25 12.09 2 402 26 12.5% 2 381 27 13 096 2 361 28 13.59 2341 29 14.06 2.322 30 14.5% 2.302 11 19 9. 4 3 808 3.762 3.717 3.673 3.630 3.588 3546 3.505 3.465 3.426 3 387 3.349 3.312 3 270 3240 3.204 3. 170 3.136 3 102 3070 3.037 3.000 2.974 2944 2.914 2.884 2. AS 5 4.713 4.646 4.580 4.515 4.452 4.390 4 329 4270 4.212 4.156 4 100 4040 3.993 3.941 3.890 3.840 3.791 3.743 3.896 3.650 3.605 3.561 6 5.601 5 508 5.417 5.329 5.242 5.158 5.076 4.990 4.917 4.841 4.787 4.694 4.623 4554 4.480 4.420 4.355 4292 4231 4.170 4.111 4,054 3.990 3.943 3 889 3.836 374 Rate 50 5% 51 0% 51.5% 52 0% 52 5% 53.0% 53.5% 54.0% 54.596 550% 55.5% 56 0% 50.596 5709 57 59 58 06 58,590 59.0% 59.596 800 80 59 61.09 61590 82.09 0259 03 0 FORT 3 4 1.399 1594 1.391 1.584 1383 1.573 1 375 1 563 1.368 1.553 1 360 1.542 1 352 1 532 1345 1523 1.337 1.513 1.330 1 503 1323 1.494 1.315 1.484 1.308 1.475 1 301 1 406 1 294 1.457 1 287 1447 1.280 1.439 1 273 1430 1.286 1.421 1.280 1412 1.253 1.404 1 247 1.395 1 240 1.387 1234 1.379 1.227 1371 1.221 1 382 214 1144 18 19 5 1.724 1711 1 698 1.686 1.674 1.862 1 650 1.638 1.626 1 615 1.004 1 592 1.581 1.570 1 500 1.549 1.539 1.528 1 518 1,500 1.498 1.488 1.478 1.468 1459 1.449 1 an 6 1.810 1.795 1.781 1.767 1 753 1.740 1.726 1713 1.700 1.687 1 674 1.062 1.649 1 637 1.625 1.813 1.602 1.590 1.579 1.507 1556 1545 1534 1524 1513 1 500 3.475 3.433 3.392 2 1 14 15 23 Present Value Tables Type here to search