PART Capital Decision Making 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 $2,050. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 16 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 $5.76 and Big Al believes that a price of $.55 per can would win him good will What is the estimated annual sales in cans of soda 117,011 What is the contribution margin per can of soda? (rounded to two places. S###) 117,02) How many cans of soda must old each yeartot ven? Roundup tozer ######cans) 17,03) Annual incremental cash nflows fromthe soda machine? (rounded t tw places 117,041 What is the payback period in years? rounded totw places ### years) 17,05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18 17,06 What is the internal rate of return. Pick the closest interest rate from the tables on page 18 17,07] 6-10 5865 40 230-74 69353209 67 -5 34 233222|2233 24 45 96 87 8962 222211 4444444444333333 257 Rat 50-5555555 55 56 5589 59-60 60 666666 64 64 65 66 66 6686 69 69 70 70 71 71 72 0 555555544 517532234 2739 44443 3333333333 3333333333|33332222 2 4827-30 655 8036 4208 2221111 2 3333333333222222222222 222222 22222222222222|22222222222222 889900112233445566778899001