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Thank you for your help! Let me know if you need the other tables Q1 Stupendous Candy Company is considering purchasing a second chocolate dipping

Thank you for your help! Let me know if you need the other tables Q1

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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 (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. Requirement 1. Calculate the following for the new machine: Stupendous estimates it will be able to produce more candy using the second machine and thus increase its annual contribution margin. It also estimates there will be a small disposal value of the machine but the cost of removal will offset a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the inves that value. Ignore income tax issues in your answers. Assume all cash flows The net present value is 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

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