The Philadelphia Foodbank is a nonprofit organization that receives donations of food and distributes this food to appropriate charitable organizations. (Click the icon to view additional information.) He used this wait time data and the following assumptions to determine the financial benefit of buying a second shrinkwrap machine. (Click the icon to view the assumptions.) Read the requirements. Requirement The expected Requirement First enter the Requirements 1. What is the expected net cash inflow per year from purchasing a second shrinkwrap machine (i.e., how much cost could be saved each year by eliminating the wait time)? 2. What is the payback period of the second shrinkwrap machine? Round your answer to the nearest two decimal places. 3. What would the expected net cash inflow per year be if the hourly wage rate used for this analysis was increased by 25% to reflect the cost of employee benefits? w much cost could be saved each year by eliminating the wait time)? o decimal places. Requirement If the employe Requirement The payback Requirement The payback p Many times, large quantities of food need to be shrinkwrapped to secure the items for shipping to the charitable organizations. The VP of Operations at the Philadelphia Foodbank recently performed a time study of the time that its warehouse personnel spend waiting for the shrinkwrap machine to become available. More info 5. 4. What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? Round your answer to the nearest two decimal places. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. is inc e is to ca rs. e ori Print Done ng th Assumptions Cost of new shrinkwrap machine plus installation = $27,000 Average wait time per warehouse picker per day = 60 minutes Number of warehouse pickers = 12 Hourly wage of warehouse personnel = $8.00 Foodbank is open 5 days a week, 52 weeks a year, except for 10 holidays Expected useful life of machine = 10 years Expected salvage value = $2,500 Print Done The Philadelphia Foodbank is a nonprofit organization that receives donations of food and distributes this food to appropriate charitable organizations. (Click the icon to view additional information.) He used this wait time data and the following assumptions to determine the financial benefit of buying a second shrinkwrap machine. (Click the icon to view the assumptions.) Read the requirements. Requirement 1. What is the expected net cash inflow per year from purchasing a second shrinkwrap machine (i.e., how much cost could be saved each year by eliminating the wait time)? The expected net cash inflow (cost savings) per year of eliminating employee wait time is Requirement 2. What is the payback period of the second shrinkwrap machine? Round your answer to the nearest two decimal places. First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) (1) (2) = Payback period years Requirement 3. What would the expected net cash inflow per year be if the hourly wage rate used for this analysis was increased by 25% to reflect the cost of employee benefits? If the employee wage rate increased 25%, the net cash inflow (cost savings) per year of eliminating employee wait time is Requirement 4. What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expected net cash inflow per year? (Round your answer to two decimal places.) The payback period of the second shrinkwrap machine when the increased wage rate is used is years. Requirement 5. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback period using the hourly rate without any benefits included? Explain. The payback period using the increased hourly wage rate (3) as compared to the original payback period using the hourly rate without any benefits included because (4) Requirement 2. What is the payback period of the second shrinkwrap machine? Round your answer to the First enter the formula, then calculate the payback period. (Round your answer to two decimal places.) = Payback period years Accounting rate of return Expected annual net cash inflow Future value Initial investment Net present value Present value ash inflow per year be if the hourly wage rate used for this a et cash inflow (cost savings) per year of eliminating employe he second shrinkwrap machine when the increased wage ra achine when the increased wage rate is used is e increased hourly wage rate increase or decrease as comp as compared to the original payback vage rate Residual value Total net cash inflows alculate the payback period. (Round your answer to two decimal places.) he expect Accounting rate of return reased 25 ayback pe cond shrinl ack period increased Expected annual net cash inflow Future value Initial investment Net present value Present value Residual value Total net cash inflows Payback period years rate used for this analysis was increased by 25% to reflect th eliminating employee wait time is increased wage rate is used to calculate the expected net ca used is years. r decrease as compared to the original payback period using he original payback period using the hourly rate without any b If the employee wage rate increased 25%, the net cash inflow (cost savings) per year of eliminating employee wait time is Requirement 4. What is the payback period of the second shrinkwrap machine when the increased wage rate is used to calculate the expecte The payback period of the second shrinkwrap machine when the increased wage rate is used is years. Requirement 5. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original payback perioc as compared to the original payback period using the hourly rate withou The payback period using the increased hourly wage rate decreases increases Requirement 5. Did the payback period using the increased hourly wage rate increase or decrease as compared to the original pa The payback period using the increased hourly wage rate as compared to the original payback period using the hourly there are less costs each year and the annual cost savings is less than the initial investment in the project. there are less costs each year and the annual cost savings is more than the initial investment in the project. there are more costs each year and the annual cost savings is less than the initial investment in the project. there are more costs each year and the annual cost savings is more than the initial investment in the project