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Stupendous Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Stupendous has accumulated regarding the
Stupendous Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Stupendous 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 $1 table Future Value of Annuity of $1 table Read the requirements. Data table Requirement 1. Calculate the following for the new machine: a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use minus si The net present value is $ 23,835 b. Payback period (Round your answer to two decimal places.) The payback period in years is 7.44 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 Stupendous Candy consider in deciding whether to purchase the new machine? Etext pages Print Done Get more help C Cost of the machine $110,000 $18,000 Increased annual contribution margin Life of the machine Required rate of return 9 years 4% Present Value of $1 Periods 2% Period 1 0.980 Period 2 0.961 0.925 4% 0.962 6% 0.943 8% 10% 0.926 0.909 0.890 0.857 0.826 12% 14% 16% 18% 0.893 0.877 0.862 0.847 0.797 0.769 0.743 0.718 0.833 0.820 0.806 0.794 0.694 0.672 20% 22% 24% 26% 28% 30% 32% 0.781 0.769 0.758 0.650 0.630 0.610 0.592 0.574 0.510 40% Periods 0.714 Period 1 Period 2 Period 3 0.942 0.889 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.551 0.524 0.500 0.477 0.455 0.435 0.364 Period 3 Period 4 Period 4 0.924 0.924 0 855 0.855 0.792 0 792 0.735 0.735 0.003 0.683 0.636 0.636 0.592 0.592 0.552 0.552 0.516 0.482 0 451 0.451 0 423 0.397 0.425 0.397 0.575 0.373 0.350 0 350 0.329 0.329 0.260 Period 4 Period 4 Period 5 0.906 0.822 0747 0 681 0.621 0.567 0519 0.822 0.74 0.681 0 476 0 437 0402 0.370 0.02 0.402 0.370 0 341 0315 0291 0269 0.250 0.341 0.315 0.231 0.269 0.186 Period 5 Period 3 Period 6 0 888 renoa Period 7 0.790 0 790 0 705 0.630 0.564 0.630 0.507 0.507 0456 0 410 0 370 0335 0.303 0275 0.250 0.456 0.410 0.370 0.555 0.505 0.215 0.250 0 227 0 207 0 189 0.207 0.133 0.155 Period b Period 6 0871 0 760 0.665 0.760 0.583 0.003 0.513 0 452 0 400 0 354 0.514 0314 0279 0249 0222 0 198 0 178 0159 0 143 0.095 0.213 0.249 0.222 0.145 Period Period 7 Period Period 8 0.853 0.853 0.731 0731 0.627 0.627 0 510 0.540 0.467 0404 0.404 0.351 0.351 0.305 0266 0.266 0233 0.233 0.204 0.204 0179 0.179 0.15/ 0 157 0.139 0123 0.123 0.108 0 108 0.068 0.068 Period 8 Period 9 Period 9 0.837 0.837 0.703 0703 0.592 0.592 0.500 0.424 0.361 0308 0.308 0.263 0.225 0225 0.194 0194 0167 0 111 0.167 0.144 0.125 0125 0.108 0 001 0.094 0.082 0.048 0.048 Period 9 Period 9 Period 10 Period 10 0.820 0.820 0.676 0.676 Period 11 0.804 0163 0.558 0.463 0.386 0.322 0.322 0270 0.270 0.227 0227 0191 0.191 0.162 0162 0.137 0137 0 116 0.116 0.099 0.099 0.085 0.085 0.073 0.073 0.062 0.650 0.650 0429 0.527 0.035 Period 10 0.429 0287 0.350 0.287 0.237 0237 0195 0162 0.195 0.162 0.135 0.135 0.112 0112 0.094 0.094 0.079 0.066 0.056 0.056 0.047 0.017 0.025 0.025 Period 11 Period 11 Period 12 0788 Period 12 0.788 0.625 0.625 0.497 0.497 0397 0.397 0.319 0319 0257 0208 0137 0.257 0.208 0.168 0.137 0112 0.082 0.112 0.092 0.076 0.076 0.062 0.052 0.052 0.013 0.043 0.036 0.036 0.018 0.018 Period 12 Period 12 Period 13 0 773 Period 14 0.758 Period 13 0.773 0.601 0.601 0.469 0.368 0290 0.469 0.368 0.290 0.229 0229 0.182 0182 0145 0 116 0.145 0.116 0.093 0.093 0.075 0.075 0.061 0.061 0.050 0.050 2010 0.040 0.033 0.033 0.027 0.027 0.013 0.013 Period 13 Period 13 0.758 0.577 0577 0442 0.442 0.340 0310 0263 0.263 0205 0.205 0.160 0.125 0125 0.099 0.078 0.078 0.062 0.062 0019 0.049 0039 0.039 0.032 0.025 0.025 0.021 0.021 0.009 0.009 Period 14 Period 11 Period 15 0.743 Period 16 0.728 0.555 0.555 0.41/ 0.417 0315 0239 0.315 0.239 0183 0.183 0.140 0 110 0.108 0108 0091 0.084 0.065 0.051 0.051 0.040 2010 0.031 0.031 0.025 0.025 0.020 0.020 0.016 0.016 0.006 Period 15 0.534 0531 0.391 0292 0.394 0.292 Period 17 0.714 0.513 0.371 0.270 0218 0.218 0.198 0.146 0.163 0123 0.123 0.093 0.093 0.071 0.054 0051 0.042 0.032 0.032 0.025 0.025 0.019 0.019 0.015 0.015 0.012 0.012 0.005 0.005 Period 16 Period 16 0.108 0.080 0.060 0.045 0.034 0.026 0.020 0.015 0.012 0.009 0.003 Period 17 Period 18 0.700 0.494 0.350 0.250 Period 19 0.686 0.475 0.331 0.232 Period 20 0.673 0.456 0.312 0.215 Period 0.660 Period 22 0.647 0.422 0.439 0.294 2 201 Period 22 0631 Period 0.634 0.406 0.262 0.170 0.112 0.199 0278 0101 0.278 0.184 0.123 0.083 0170 0142 0.074 Period 24 0.622 0.390 Period 25 0.610 Period 26 0.598 renod 0.375 0.361 0.158 0116 0.102 0.180 0.130 0.095 0.069 0.051 0.038 0.164 0.116 0.083 0.060 0.043 0.031 0.023 0.017 0.012 0.009 0110 0.149 0.104 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.011 0.135 0.093 0.064 0.044 0.031 0.015 0.022 0.015 0.011 0.008 0.006 0.056 0.038 0.026 0.018 0.013 0.013 0.009 0.006 0.004 0.049 0.033 022 0.015 102 0066 0.043 0.028 0.019 0.013 0.146 0.092 0.059 0.038 0.024 0.016 0.016 0.010 0.007 0.028 0.021 0.016 0.012 0.009 0.007 0.002 Period 18 0.007 0.005 0.002 Period 19 0.005 0.004 0.001 Period 20 0.004 0.003 0.001 Period 21 0.018 0.003 0.002 0.001 Period 22 Period 27 0.586 renod Period 28 0.574 Period 29 0.563 Period 30 0.552 0.347 0.333 0.321 0.308 Period 35 0.500 0.253 Period 40 0.453 0.208 0.097 0.010 0.007 0.005 0.003 0.247 0.008 0.006 0.004 0.233 0.005 0.220 0.135 0.084 0.053 0.033 0.021 0.014 0.009 0.006 0.004 0.000 Period 26 0.207 0.125 0.076 0.047 0.029 0.018 0.011 0.007 0.005 0.003 0.002 0.001 0.001 0.001 0.000 Period 27 0.196 0.116 0.069 0.042 0.026 0.016 0.010 0.006 0.004 0.002 0.002 0.001 0.001 0.000 0.000 Period 28 0.185 0.107 0.063 0.037 0.022 0.014 0.008 0.005 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 29 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.003 0.002 0.001 0.001 0.000 0.000 0.000 Period 130 0.130 0.068 0.036 0.019 0.010 0.006 0.003 0.002 0.001 0.001 0.000 0.000 0.000 0.046 0.022 0.011 0.005 0.003 0.001 0.001 0.000 0.000 0.000 0.000 0.002 0.002 0.000 Period 23 0.003 0.002 0.002 0.001 0.000 Period 24 0.003 0.002 0.001 0.001 0.002 0.002 0.001 0.001 0.000 Period 25 0.000 0.000 Period 35 0.000 0.000 0.000 Period 40
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