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Read the requirements. 1. Calculate the following for the new machine: a. Net present value b. Payback period Requirement 1. Calculate the following for the
Read the requirements. 1. Calculate the following for the new machine: a. Net present value b. Payback period Requirement 1. Calculate the following for the new machine: c. Discounted payback period a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net pr d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on net initial investment (assume The net present value is straight-line depreciation) b. Payback period (Round your answer to two decimal places.) 2. What other factors should Splendid Candy consider in deciding whether to purchase the new machine? The payback period in years is c. Discounted payback period (Round interim calculations to the nearest whole The discounted payback period in years is Data table Splendid estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate there will be a small disposal value of the machine but the cost of removal will offset that value. Ignore income tax issues in your answers. Assume all cash flows occur at year-end except for initial investment amounts
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