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The Gumball Manufacturing Company is considering buying a new machine. The relevant capital budgeting information is provided below: COST OF THE MACHINE ANNUAL CONTRIBUTION MARGIN

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The Gumball Manufacturing Company is considering buying a new machine. The relevant capital budgeting information is provided below: COST OF THE MACHINE ANNUAL CONTRIBUTION MARGIN LIFE OF THE MACHINE IN YEARS REQUIRED RATE OF RETURN $$15,000106%80,000 (IGNORE TAXES IN THE PROBLEM.) 1 Calculate the NPV of the investment. 2 Calculate the nondiscounted payback period. 3 Calculate the discounted payaback period. 4 What is the internal rate of return? Choose... 13.43% $30,401 5.33 15.92% 6.33 4.33 $33,102

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