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Munch N' Crunch Snack Company is considering two possible investments: a delivery truck or a bagging machine. The delivery truck would cost $26,361.16 and could be used to deliver an additional 42,000 bags of pretzels per year. Each bag of pretzels can be sold for a contribution margin of $0.38. The delivery truck operating expenses, excluding depreciation, are $0.52 per mile for 14,000 miles per year. The bagging machine would replace an old bagging machine, and its net investment cost would be $21,412.50. The new machine would require three fewer hours of direct labor per day. Direct labor is $10 per hour. There are 250 operating days in the year. Both the truck and the bagging machine are estimated to have four-year lives. The minimum rate of return is 14%. However, Munch N' Crunch has funds to invest in only one of the projects. Present Value of an Annuity of $1 at Compound Interest a. Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent. First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows: \begin{tabular}{cccc} & BranchOfficeExpansion & ComputerSystemUpgrade & ATMKioskExpansion \\ \hline Amount to be invested & $739,711 & $581,304 & $271,547 \\ Annual net cash flows: & & & \\ Year 1 & 399,000 & 291,000 & 180,000 \\ Year 2 & 371,000 & 262,000 & 124,000 \\ Year 3 & 339,000 & 233,000 & 90,000 \end{tabular} Present Value of $1 at Compound Interest \begin{tabular}{cccccc} \hline Year & 6% & 10% & 12% & 15% & 20% \\ \hline 1 & 0.943 & 0.909 & 0.893 & 0.870 & 0.833 \\ 2 & 0.890 & 0.826 & 0.797 & 0.756 & 0.694 \\ 3 & 0.840 & 0.751 & 0.712 & 0.658 & 0.579 \\ 4 & 0.792 & 0.683 & 0.636 & 0.572 & 0.482 \\ 5 & 0.747 & 0.621 & 0.567 & 0.497 & 0.402 \\ 6 & 0.705 & 0.564 & 0.507 & 0.432 & 0.335 \\ 7 & 0.665 & 0.513 & 0.452 & 0.376 & 0.279 \\ 8 & 0.627 & 0.467 & 0.404 & 0.327 & 0.233 \\ 9 & 0.592 & 0.424 & 0.361 & 0.284 & 0.194 \\ 10 & 0.558 & 0.386 & 0.322 & 0.247 & 0.162 \end{tabular} Required: 1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar. 2. Determine a present value index for each project. If required, round your answers to two decimal places. a. Compute the net present value, using a rate of return of 12%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. Use the minus sign to indicate a negative net present value. b. Based on the analysis prepared in part (a), is the rate of return (1) more than 12%,(2)12%, or (3) less than 12% ? c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presente above