Solomon Airline Company is considering expanding its territory. The company has the opportunity to purchase one of two different used airplanes. The first airplane is expected to cost $14,950,000; it will enable the company to increase its annual cash inflow by $6,500,000 per year. The plane is expected to have a useful life of five years and no salvage value. The second plane costs $40,480,000; it will enable the company to increase annual cash flow by $8,800,000 per year. This plane has an eight-year useful life and a zero salvage value. Required a. Determine the payback period for each investment alternative and identify the alternative Solomon should accept if the decision is based on the payback approach. (Round your answers to 1 decimal place.) The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates. The dipping operation is currently done largely by hand. The machine the company is considering costs $230,000. The manufacturer estimates that the machine would be usable for five years but would require the replacement of several key parts at the end of the third year. These parts would cost $10,400, including installation. After five years, the machine could be sold for $7,500. The company estimates that the cost to operate the machine will be $8,400 per year. The present method of dipping chocolates costs $44,000 per year. In addition to reducing costs, the new machine will increase production by 6,000 boxes of chocolates per year. The company realizes a contribution margin of $1.55 per box. A13% rate of return is required on all investments. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What are the annual net cash inflows that will be provided by the new dipping machine? The company estimates that the cost to operate the machine will be $8,400 per year: The present method of dipping chocolates costs $44,000 per year. In addition to reducing costs, the new machine will increase production by 6,000 boxes of chocolates per year. The company realizes a contribution margin of $1.55 per box. A 13% rate of return is required on all investments. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required: 1. What are the annual net cash inflows that will be provided by the new dipping machine? 2. Compute the new machine's net present value. Any cash outflows should be indicated with parentheses (). Use the appropriate time value table to determine the discount factor(s) and enter the final answers to the nearest whole dollar amount. In the following table, the column headings indicate years for which the machine will be in use. "Now" represents the present time... when the machine is purchased. Thus, Annual net cash inflows will happen in each year starting with Year 1. Replacement parts will be purchased in Year 3, and so on. If a particular box does not require a number, leave it blank. Do not enter a zero in such boxes