Requirements 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation) 2. What other factors should Heavenly Candy consider in deciding whether to purchase the new machine? Heavenly Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Heavenly has accumulated regarding the new machine is: (Click the icon to view the information) Present Value of \$1 table Present Value of Annuity of \$1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the following for the new machine: a. Net present value (NPV) (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest wholedollar:) The net present value is \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{15}{|c|}{\begin{tabular}{l} Present Value of Annuity of $1.00 in Arrears* \\ \begin{tabular}{|l|l|l|l|l} Periods & 2% & 4% & 6% & 8% \\ \end{tabular} \end{tabular}}} \\ \hline & 2% & 4% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% & 22% & 24% & & 2i \\ \hline Period 1 & 0.980 & 0.962 & 0.943 & 0.926 & 0909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 & 0.820 & 0806 & 0 & 8 \\ \hline Period 2 & 1.942 & 1.886 & 1.833 & 1.783 & 1.736 & 1690 & 1.647 & 1.605 & 1.566 & 1528 & 1.492 & 1.457 & & \\ \hline Period 3 & 2.884 & 2.775 & 2.673 & 2577 & 2.487 & 2402 & 2.322 & 2246 & 2.174 & 2.106 & 2042 & 1.981 & & \\ \hline Period 4 & 3.808 & 3.630 & 3.465 & 3.312 & 3.170 & 3037 & 2914 & 2798 & 2.690 & 2.589 & 2.494 & 2.404 & 2. & \\ \hline Period 5 & 4.713 & 4.452 & 4.212 & 3.993 & 3791 & 3.605 & 3.433 & 3.274 & 3.127 & 2991 & 2.864 & 2745 & 2. & \\ \hline Period 6 & 5.601 & 5.242 & 4.917 & 4.623 & 4.355 & 4.111 & 3889 & 3.685 & 3.498 & 3.326 & 3.167 & 3.020 & 2: & \\ \hline Period 7 & 6.472 & 6.002 & 5.582 & 5206 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 & 3.416 & 3.242 & 31 & \\ \hline Period 8 & 7.325 & 6.733 & 6.210 & 5.747 & 5335 & 4968 & 4.639 & 4.344 & 4.078 & 3.837 & 3619 & 3.421 & 3: & \\ \hline Period 9 & 8.162 & 7.435 & 6.802 & 6.247 & 5759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 & 3.786 & 3.566 & 3: & \\ \hline Period 10 & 8.983 & 8.111 & 7.360 & 6710 & 6.145 & 5.650 & 5216 & 4.833 & 4.494 & 4.192 & 3.923 & 3682 & 3. & \\ \hline Period 11 & 9.787 & 8.760 & 7.887 & 7.139 & 6495 & 5.938 & 5453 & 5.029 & 4.656 & 4.327 & 4.035 & 3.776 & 3. & \\ \hline Period 12 & 10.575 & 9.385 & 8384 & 7536 & 6.814 & 6.194 & 5.660 & 5.197 & 4.793 & 4.439 & 4.127 & 3.851 & 31 & \\ \hline Period 13 & 11.348 & 9.986 & 8.853 & 7.904 & 7.103 & 6.424 & 5842 & 5.342 & 4910 & 4533 & 4.203 & 3912 & 3. & \\ \hline Period 14 & 12. 106 & 10.563 & 9295 & 8.244 & 7.367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 & 4.265 & 3.962 & 3i & \\ \hline Period 15 & 12.849 & 11.118 & 9.712 & 8.559 & 7606 & 6.811 & 6.142 & 5575 & 5.092 & 4.675 & 4315 & 4.001 & 3: & \\ \hline Period 16 & 13.578 & 11.652 & 10.106 & 8.851 & 7.824 & 6.974 & 6.265 & 5.668 & 5.162 & 4.730 & 4.357 & 4.033 & 3: & \\ \hline Period 17 & 14292 & 12. 166 & 10.477 & 9.122 & 8.022 & 7.120 & 6.373 & 5749 & 5222 & 4.775 & 4. 391 & 4.059 & 3: & \\ \hline Period 18 & 14.992 & 12659 & 10.828 & 9372 & 8201 & 7.250 & 6.467 & 5.818 & 5.273 & 4.812 & 4419 & 4.080 & 3. & \\ \hline Period 19 & 15.678 & 13.134 & 11.158 & 9604 & 8.365 & 7,366 & 6.550 & 5877 & 5.316 & 4.843 & 4.442 & 4.097 & 3.: & \\ \hline Period 20 & 16.351 & 13.590 & 11.470 & 9818 & 8.514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.870 & 4.460 & 4.110 & 3i & \\ \hline Period 21 & 17.011 & 14029 & 11.764 & 10.017 & 8.649 & 7.562 & 6.687 & 5,973 & 5.384 & 4.891 & 4.476 & 4121 & 3.1 & \\ \hline Period 22 & 17.658 & 14.451 & 12.042 & 10.201 & 8.772 & 7.645 & 6.743 & 6.011 & 5.410 & 4.909 & 4.488 & 4.130 & 3i & \\ \hline Period 23 & 18292 & 14.857 & 12.303 & 10.371 & 8.883 & 7.718 & 6.792 & 6.044 & 5.432 & 4.925 & 4.499 & 4. 137 & 3.t & \\ \hline Period 24 & 18.914 & 15247 & 12.550 & 10.529 & 8.985 & 7.784 & 6.835 & 6.073 & 5.451 & 4.937 & 4507 & 4.143 & 3i & \\ \hline Period 25 & 19.523 & 15622 & 12.783 & 10.675 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 & 4514 & 4.147 & 3i & \\ \hline Period 26 & 20.121 & 15.983 & 13.003 & 10.810 & 9.161 & 7.896 & 6.906 & 6.118 & 5.480 & 4956 & 4.520 & 4. 151 & 3i & \\ \hline Period 27 & 20707 & 16330 & 13.211 & 10.935 & 9237 & 7.943 & 6.935 & 6.136 & 5.492 & 4.964 & 4.524 & 4.154 & 30 & \\ \hline Period 28 & 21.281 & 16.663 & 13.406 & 11.051 & 9.307 & 7984 & 6.961 & 6.152 & 5.502 & 4.970 & 4.528 & 4.157 & 3i & \\ \hline Period 29 & 21.844 & 16.984 & 13.591 & 11.158 & 9370 & 8022 & 6.983 & 6.166 & 5510 & 4975 & 4.531 & 4.159 & & \\ \hline Period 30 & 22396 & 17.292 & 13.765 & 11258 & 9427 & 8.055 & 7.003 & 6.177 & 5.517 & 4979 & 4534 & 4.160 & 3 & \\ \hline Period 35 & 24999 & 18.665 & 14.498 & 11.655 & 9644 & 8.176 & 7.070 & 6215 & 5.539 & 4.992 & 4.541 & 4.164 & 3i & \\ \hline Period 40 & 27.355 & 19.793 & 15.046 & 11.925 & 9.779 & 8.244 & 7.105 & 6.233 & 5548 & 4.997 & 4.544 & 4,166 & . & \\ \hline & & & & & & & & & & & & & & \\ \hline \end{tabular} Reference Requirements 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation) 2. What other factors should Heavenly Candy consider in deciding whether to purchase the new machine? Heavenly Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Heavenly has accumulated regarding the new machine is: (Click the icon to view the information) Present Value of \$1 table Present Value of Annuity of \$1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the following for the new machine: a. Net present value (NPV) (Use factors to three decimal places, XXXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest wholedollar:) The net present value is \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{2}{*}{\multicolumn{15}{|c|}{\begin{tabular}{l} Present Value of Annuity of $1.00 in Arrears* \\ \begin{tabular}{|l|l|l|l|l} Periods & 2% & 4% & 6% & 8% \\ \end{tabular} \end{tabular}}} \\ \hline & 2% & 4% & 6% & 8% & 10% & 12% & 14% & 16% & 18% & 20% & 22% & 24% & & 2i \\ \hline Period 1 & 0.980 & 0.962 & 0.943 & 0.926 & 0909 & 0.893 & 0.877 & 0.862 & 0.847 & 0.833 & 0.820 & 0806 & 0 & 8 \\ \hline Period 2 & 1.942 & 1.886 & 1.833 & 1.783 & 1.736 & 1690 & 1.647 & 1.605 & 1.566 & 1528 & 1.492 & 1.457 & & \\ \hline Period 3 & 2.884 & 2.775 & 2.673 & 2577 & 2.487 & 2402 & 2.322 & 2246 & 2.174 & 2.106 & 2042 & 1.981 & & \\ \hline Period 4 & 3.808 & 3.630 & 3.465 & 3.312 & 3.170 & 3037 & 2914 & 2798 & 2.690 & 2.589 & 2.494 & 2.404 & 2. & \\ \hline Period 5 & 4.713 & 4.452 & 4.212 & 3.993 & 3791 & 3.605 & 3.433 & 3.274 & 3.127 & 2991 & 2.864 & 2745 & 2. & \\ \hline Period 6 & 5.601 & 5.242 & 4.917 & 4.623 & 4.355 & 4.111 & 3889 & 3.685 & 3.498 & 3.326 & 3.167 & 3.020 & 2: & \\ \hline Period 7 & 6.472 & 6.002 & 5.582 & 5206 & 4.868 & 4.564 & 4.288 & 4.039 & 3.812 & 3.605 & 3.416 & 3.242 & 31 & \\ \hline Period 8 & 7.325 & 6.733 & 6.210 & 5.747 & 5335 & 4968 & 4.639 & 4.344 & 4.078 & 3.837 & 3619 & 3.421 & 3: & \\ \hline Period 9 & 8.162 & 7.435 & 6.802 & 6.247 & 5759 & 5.328 & 4.946 & 4.607 & 4.303 & 4.031 & 3.786 & 3.566 & 3: & \\ \hline Period 10 & 8.983 & 8.111 & 7.360 & 6710 & 6.145 & 5.650 & 5216 & 4.833 & 4.494 & 4.192 & 3.923 & 3682 & 3. & \\ \hline Period 11 & 9.787 & 8.760 & 7.887 & 7.139 & 6495 & 5.938 & 5453 & 5.029 & 4.656 & 4.327 & 4.035 & 3.776 & 3. & \\ \hline Period 12 & 10.575 & 9.385 & 8384 & 7536 & 6.814 & 6.194 & 5.660 & 5.197 & 4.793 & 4.439 & 4.127 & 3.851 & 31 & \\ \hline Period 13 & 11.348 & 9.986 & 8.853 & 7.904 & 7.103 & 6.424 & 5842 & 5.342 & 4910 & 4533 & 4.203 & 3912 & 3. & \\ \hline Period 14 & 12. 106 & 10.563 & 9295 & 8.244 & 7.367 & 6.628 & 6.002 & 5.468 & 5.008 & 4.611 & 4.265 & 3.962 & 3i & \\ \hline Period 15 & 12.849 & 11.118 & 9.712 & 8.559 & 7606 & 6.811 & 6.142 & 5575 & 5.092 & 4.675 & 4315 & 4.001 & 3: & \\ \hline Period 16 & 13.578 & 11.652 & 10.106 & 8.851 & 7.824 & 6.974 & 6.265 & 5.668 & 5.162 & 4.730 & 4.357 & 4.033 & 3: & \\ \hline Period 17 & 14292 & 12. 166 & 10.477 & 9.122 & 8.022 & 7.120 & 6.373 & 5749 & 5222 & 4.775 & 4. 391 & 4.059 & 3: & \\ \hline Period 18 & 14.992 & 12659 & 10.828 & 9372 & 8201 & 7.250 & 6.467 & 5.818 & 5.273 & 4.812 & 4419 & 4.080 & 3. & \\ \hline Period 19 & 15.678 & 13.134 & 11.158 & 9604 & 8.365 & 7,366 & 6.550 & 5877 & 5.316 & 4.843 & 4.442 & 4.097 & 3.: & \\ \hline Period 20 & 16.351 & 13.590 & 11.470 & 9818 & 8.514 & 7.469 & 6.623 & 5.929 & 5.353 & 4.870 & 4.460 & 4.110 & 3i & \\ \hline Period 21 & 17.011 & 14029 & 11.764 & 10.017 & 8.649 & 7.562 & 6.687 & 5,973 & 5.384 & 4.891 & 4.476 & 4121 & 3.1 & \\ \hline Period 22 & 17.658 & 14.451 & 12.042 & 10.201 & 8.772 & 7.645 & 6.743 & 6.011 & 5.410 & 4.909 & 4.488 & 4.130 & 3i & \\ \hline Period 23 & 18292 & 14.857 & 12.303 & 10.371 & 8.883 & 7.718 & 6.792 & 6.044 & 5.432 & 4.925 & 4.499 & 4. 137 & 3.t & \\ \hline Period 24 & 18.914 & 15247 & 12.550 & 10.529 & 8.985 & 7.784 & 6.835 & 6.073 & 5.451 & 4.937 & 4507 & 4.143 & 3i & \\ \hline Period 25 & 19.523 & 15622 & 12.783 & 10.675 & 9.077 & 7.843 & 6.873 & 6.097 & 5.467 & 4.948 & 4514 & 4.147 & 3i & \\ \hline Period 26 & 20.121 & 15.983 & 13.003 & 10.810 & 9.161 & 7.896 & 6.906 & 6.118 & 5.480 & 4956 & 4.520 & 4. 151 & 3i & \\ \hline Period 27 & 20707 & 16330 & 13.211 & 10.935 & 9237 & 7.943 & 6.935 & 6.136 & 5.492 & 4.964 & 4.524 & 4.154 & 30 & \\ \hline Period 28 & 21.281 & 16.663 & 13.406 & 11.051 & 9.307 & 7984 & 6.961 & 6.152 & 5.502 & 4.970 & 4.528 & 4.157 & 3i & \\ \hline Period 29 & 21.844 & 16.984 & 13.591 & 11.158 & 9370 & 8022 & 6.983 & 6.166 & 5510 & 4975 & 4.531 & 4.159 & & \\ \hline Period 30 & 22396 & 17.292 & 13.765 & 11258 & 9427 & 8.055 & 7.003 & 6.177 & 5.517 & 4979 & 4534 & 4.160 & 3 & \\ \hline Period 35 & 24999 & 18.665 & 14.498 & 11.655 & 9644 & 8.176 & 7.070 & 6215 & 5.539 & 4.992 & 4.541 & 4.164 & 3i & \\ \hline Period 40 & 27.355 & 19.793 & 15.046 & 11.925 & 9.779 & 8.244 & 7.105 & 6.233 & 5548 & 4.997 & 4.544 & 4,166 & . & \\ \hline & & & & & & & & & & & & & & \\ \hline \end{tabular} Reference
