Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help fill empty yellow cells Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day.

image text in transcribed

Please help fill empty yellow cells

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 $2,250. 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 11 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 $6.24 and Big Al believes that a price of $.75 per can would win him good will. What is the estimated annual sales in cans of soda? {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) 0.49 {17.02) How many cans of soda must be sold each year to breakeven? Round up to zero places, #**##**# cans) {17.03) Annual incremental cash inflows from the soda machine? (rounded to two places, $#.## {17.04} What is the payback period in years? (rounded to two 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}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Communication Audit In Globally Integrated R And D Project Teams

Authors: Justyna Alnajjar

1st Edition

3631666608, 978-3631666609

More Books

Students also viewed these Accounting questions

Question

Rewrite the expression with a pos 8xz^(-(1)/(2))

Answered: 1 week ago