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Swifty Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine
Swifty Doggy, Inc. produces and sells corn dogs. The corn dogs are dipped by hand. Austin Beagle, production manager, is considering purchasing a machine that will make the corn dogs. Austin has shopped for machines and found that the machine he wants will cost $339,600. In addition, Austin estimates that the new machine will increase the company's annual net cash flows by $52,300. The machine will have a 12-year useful life and no salvage value. Click here to view PV tables. Calculate the cash payback period. (Round answer to 2 decimal places, e.g. 15.21.) Cash payback period years Calculate the machine's internal rate of return. Internal rate of return % Calculate the machine's net present value using a discount rate of 10%. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 5,275.) Net present value $ Assuming Swifty Doggy, Inc.'s cost of capital is 10%, is the investment acceptable?
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