Swifty Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $115,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a $9,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 15,000 frames per year, generating a total contribution margin of $112,500. Martson Molders currently sells a molding machine that will allow Swifty Pix to increase production and sales to 20,000 frames per year. The machine, which has a ten-year life, sells for $150,000 and would cost $12,000 per year to operate Swifty Pix's current machine costs only $8,000 per year to operate. If Swifty Pix purchases the new machine, the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $20,000 at the end of its ten-year life. Swifty Pix uses straight-line depreciation APPENDIX 9.2 Present value of $1 received in a periods 10% 115 12% 135 16% 14% 9% 18% 20% Periods 5% 2 3 0.9615 0.9524 0.9246 0.9070 0.8890 0.8638 0.8548 0.8227 0.8219 0.7835 6% 7 8% 0.9434 109346 0.9259 0.8900 0.8734 0.8573 0.R396 0.8163 0.7938 0.7921 0.7629 0.7350 0.7473 0.7130 0.6806 0.9174 0.8417 0.7722 0.7084 0.6499 0.9091 0.9009 0.8264 0.8116 0.7513 0.7312 0.6830 0.6587 0.6209 0.5935 0.8929 0.7972 0.7118 0.6355 0.5674 0.8850 0.7831 0.6931 0.6133 0.5428 0.8772 0.7695 0.6750 0.5921 0.5194 0.8621 0.8475 0.8333 0.7432 0.7182 0.6944 0.6607 0.6086 0.5787 0.5523 045158 0.423 0.4767 04371 0.4019 4 3 6 7 & 0.7903 0.7599 0.7307 0.7026 0.6756 0.7462 0.7050 0.7107 0.6651 0.6768 0.6274 0.6446 0_5919 0.6139 0.5584 0.6663 06227 0.5820 0.5439 OSOS 0.6302 0.5963 05645 0.5835 0.5470 0.5132 0.5403 05019 0.4665 0.5002 0.4604 004241 0.4632 0.4224 0.3855 0.5346 0.4817 04339 0.3909 0.3522 0.5066 044521 0.4039 0.3606 0.3220 0.4803 2.4556 0.4257 0.3996 023762 0.3506 0.3329 0.8075 0.2946 0.2697 0.4100 03538 0.3050 0.26 0.2267 0.3704 0.3139 0.2660 0.2255 0.1911 0.3349 0.2791 0.2326 0.1938 01615 10 11 12 13 14 15 08496 0.6246 0.6006 0.5775 0.5553 0.5847 0.5568 0.5303 0:5051 0.4810 0.5268 0.4970 0.4688 0.4423 0.4123 0.4751 0.4440 0.4130 0.3878 0.3624 0.4289 0.3971 0.3677 0.3405 023152 0.3875 0.3555 0.3262 0.2992 0.2745 0.3505 0.3186 0.2892 0.2623 0.2194 0.3173 0.2858 0.2575 02320 0.2090 0.2875 0.2567 0.2292 0.2016 0.1827 0.2607 01207 0.2012 0.1807 0.1599 0.2366 0.2076 01821 0.1597 0.1401 01954 01685 0.1452 0.1252 0.1029 0.1619 0.1346 0.1372 0.1122 0.1163 0.0935 0 0985 0.079 G.OR35 0.0669 16 37 18 19 20 0.5339 05134 0.4936 0.4746 DASGA SI (1+0) 04581 0.4363 0.4155 0.3957 0.3769 0239 0.3714 03503 03305 0.3118 0.3387 0.3166 0.2959 0.2765 0.2554 0.2919 0.2703 0.2502 0.2312 0.2145 0.2519 0.2331 0 2120 0.1945 0.1784 0.2176 0.1883 0.1978 0.1696 0.1799 0.1528 0.1635 0.1377 0.1436 0.1240 0.1631 0.1415 0.1456 0.1252 0.1.0 0.110N 0.1161 0.09 0.1037 0.086 0.1229 0.1078 0 0906 0.029 0.0728 0.09.10 0.0205 DOS 0.0002 0.0600 0.045 0.0091 0.0508 0.0076 0.0596 0.0431 00013 0.0514 0.0365 0.0261 PV APPENDIX 9.2 Present value of an annuity of $1 per period. 12% 11% 13% 14% 16% 18% Periods 4% 5% 6% 1 2 3 4 5 0.9615 1.8861 2.7751 3.6299 4.4518 0.9524 1.8594 2.7232 3.5460 4.3295 0.9434 1.8334 26730 3.4651 4.2124 2% 8% 9% 10% 0.9346 0.9259 0.9174 0.9091 18080 1.7833 1.7591 1.7355 26243 2.5731 2.531324868 3.3872 3.3121 3.2397 3.1698 4.1002 3.9922 3.8897 3.7907 0.9009 1.7125 2.4437 3.1024 3.6959 0.8929 1.6901 2.4018 3.0373 3.6048 08850 1.6681 2.3612 2.9745 3.5172 0.8772 1.6462 23216 2.9137 3.4331 0.8621 0.8475 1.6052 1.5656 2.2459 2 1743 2.7982 2.6902 32743 3.1272 20% 0.8333 1.5278 2.1065 2.5887 2.9906 6 7 5 9 10 52421 60021 6.7327 7.4353 81109 5.0757 5.7864 6.4632 7.1078 17.7217 4.9173 5.5824 6.2098 6.8017 7.3601 4.7665 4.6229 4.4859 4.3553 5.3993 5.20645.0330 4.8684 5.9713 5.7466 55348 5.3349 6.5152 6.2469 5.9952 5.7590 7.0236 6.7101 6.6177 6.1446 4.2305 4.7122 5.1461 5.5370 58892 4.1114 3.9975 45638 4.4226 4.9676 4.2988 53282 5.1317 5,6502 5.4262 3.8887 42883 4.6389 49464 52161 3.6847 4.0386 4.3436 4.6065 48332 3.4976313255 3.81153.6046 4.0776 3.8372 43030 4.0310 4.4941 4.1925 11 12 13 14 15 8.7605 8.3064 9.3551 8.8633 9.9856 9.3936 10.5631 98986 11.1184 10.3797 7.8869 8.3838 8.8527 9.2950 9.7122 7.4987 7.13906.80526.4951 7.9127 7.5361 7.1607 6.8137 835777.90387.48697.1034 8.74558.2442 7.7562 7.3667 9.1079 5595 0607 7,6061 6.2065 6.4924 6.7499 6.9819 7.1909 5.9377 5.6869 6.19.44 59176 6.4215 6.1218 6.6282 6.3025 68109 6.4624 5.4527 5.6603 5.8434 6 0021 6.1422 5.0286 46560 5.1971 4.7932 5.3423 40095 5.4675 5.0081 5.5755 5.0916 1271 4.4392 4.5327 4.6106 4.6755 16 17 1 19 20 11.6523 10.8378 10.1059 9.4666 8514 3.3126 78237 12. 1657 112741 10.4773 9.76.329.12165436 80216 126593 11.6896 10.8276 10.0591 9.3719 8.7556 R 2014 111139 12 0853 1115 10.335696036 3.9501 8.3619 13500 124622 114699 10 590098181 91285 8.51 1 S1 (+) 7.3792 7.5488 7.2016 7.8393 7.9633 6.9740 6.60.19 6.2651 7.1196 67291 63729 7.2497 68399 6.4674 7.3658 6.9380 6.5504 7.4694 7.0248 6,6231 5.6685 5.1624 5.7487 5.2223 5.817852732 5.8775 5.1163 5.92 5357 4.7296 4.7746 4.8122 48435 48696 PVA (a) Calculate the new machine's net present value assuming a 16% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to decimal place, eg. 58,971.) Net present value $ e Textbook and Media Save for later Attempts: 0 of 3 used Submit Answer (b) Use Excel or a similar spreadsheet application to calculate the new machine's Internal rate of return (Round answer to 2 decimal places, es, 1.25%) Internal rate of return (c) Calculate the new machine's payback period. (Round answer to 2 decimal places, eg. 1.25.) Payback period years e Textbook and Media Attempts: 0 of 3 used Submit Answer Sirve for later