this part deals with capital decison making and I dont completely understand how to complete the parts for the yellow boxes.

PART 7 Capital Decision Making Big Al gives his worker's a one hour lunch and wo fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers and an appreciated worker is a good worker He has priced a machine at a national member only warehouse for $2.150 The machine should be usable for 6 years after which it would be ineficient, obsolete and would have to be disposed of at the dump. Big Al believes that 7 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $5.76 and Big Al believes that a price of $ 90 per can would win him good will What is the estimated annual sales in cans of soda? (17.01) What is the contribution margin per can of soda?(rounded to two places, S.) (17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, cans) (1703) Annual incremental cash inflows from the soda machine? (rounded to two places ## [17.04) What is the payback period in years? (rounded to two places n ear 1 17.05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18 (17.06) What is the internal rate of return pick the closest interest rate from the tables on page 18 (1707) Page 18 Present Value of Annuity $100 in Arrears 136 2 42 2.81 | JADE A H5 | bar JH2O ATT 4 580 41 | 36b5 e6 | RISIS 1.24 1724 | 18101 1. 1/1 1 /15 14. 1688 1791 1. 1. 1767 1. Liao175 TA 3.HH A JIA 83 % Azu | ATE 5 5 9 A91T 15 15 1377 1 III | | || 1.6.2 162 3.426 | 31 ITH | 1. 4 1 167 || | 1662 || 140 | 1.1 2276 1F 3170 21 | 14:30 |||| | 18 1602 || 15281590 || 1518 TS 11 1. 4 1305 11 14 2974 2014 anni 29 . 452 1.463 18. 1 24) 190 214129 213 slagsleglas dalam 0% 2000 71.9 ?? ? ? 75227247 | 10- 26|||| PFA|| 11.78] 24 1286| 1367 140% 194 | 15 11 1.39 1. || 1 278 | 70... 1.122 1711321 1 201 12/14 16E 1352 1.11111314 1230 1207 1111124 | 1299 12 | 100 121 TELY TATE || 1210 1274 1311 74 0. 10. IEL | 122 130 | | d5 10 11 1269 | 126.|| | 0 195 1.19 1.5 1227 15- 17 124 179 | 16 0 1074 1179 12 17 | 78.5% 10 111111.264 | 10 1984 11 12 12. 5 16 1457191740 | 1952 | 2362 | 234 | 2012 7- 11 3.5% 1909 || 2302609 270*146 22.0 250 27.5 1682 | 28. 01 | 28.5% 18 F12 20.0% 1842) 200| 2483 Page 18 Present Value of Annuity $1.00 in Arrears 2.185 glass 245027671 2438 2643 786 1.816 1831 1791 NEER 1220 1213 17081 801031 1754 1208 alg 1.020 1.120 1171 1199 2 345 2324 2 281 2 260 273022483 2.508 2.458 81.0% 81.5% 1.730 72045 1707 1103 097 83.0% 1.186 1.179 1.173 1112 1.146 11004 2 220 2200 162 0.996 1.873 1621 1.8351 16411621 1630 1.8081 1651 85.5% 0.980 1071 1116 1141 2.106 1620 27088 2729 1.129 0.974 1.0655 1.0991.123 1.094 1.117 880000106111.1111 885 890% 89.5% 0.967 0.963 1036 1 077 1099 1.031 1.072 1093 1.020 1038 1.087 1021 10011082 a SaaleselsselslglassNIN 39.0% 1.609 1.877 20702209 1.509 1.683 20522188 1.589 1649 2.035 2.168 1.579 1838 2018 2.148 1.589 18222.00125729 1.559 1800 1985 2 109 1549179619002091 1540 1 782 1.953 21072 1530 1.769 107 2054 1521117574192112038 1512174411903201 1.502 1.732 1.890 2.000 1.493 17201 1876 1.983 1.48417071861 1966 1475 1.895 1846 1949 1832 1933 47.0% 1458 1672 1.818 1917 47.5% 144010801804 1901 48 0% 14411649 1.790 1885 48. 1432 1638 1.776 1870 49.0% 1424 1627 1.763 1854 49.5% 1.41616161750 1.839 500X1407 1805 1737 1824 04451 lalalalalalalalalala 10121.050 0.933 1.007 1.045 0901 1002 1040 092810081085 1.071 1.065 1050 1054 0.918 391025 1044 0.914 195410201039 0.9110.980 1.015 1033 O. SOT 0.975 10101 1.028 96 0% 0 903 0.971 1.000 1.023 98.5% 0 900 7 10011013 970189 97.5% 893958942 1,008 98.0% 0 880096409871003 98.65 0.8850 9600 902 1999 99.0% B2 0 97801994 99.650678 0.942 073 0989 100.0% 0.75 0938 900984 If off the chart use 100% Page 2 I See The Light Projected Income Statement For the Period Ending December 31, 20x1 $45.00 $30.00 $ 1,125 000.00 750,000.00 $ 375,000.00 Sales 25,000 lamps @ Cost of Goods Sold @ Gross Profit Selling Expenses Fored Variable (Commission per unit) Administrative Expenses Fixed Variable @ Total Selling and Administrative Expenses Net Profit $3.00 $ 98,000.00 $ 23,000.00 75,000.00 $42.000.00 50.000,00 $2.00 92.000.00 3 190,000.00 135.000.00 I See The Light Projected Balance Sheet As of December 31, 20x1 $ 34.710.00 67.500.00 Current Assets Cash Accounts Receivable Inventory Raw Material Lamp Kits Work in Process Finished Goods Total Current Assets 8,000.00 500 @ 3000 @ $16.00 $30.00 $ 90.000.00 200.210.00 $ 20,000.00 6,800.00 Foxed Assets Equipment Accumulated Depreciation Total Fixed Assets Total Assets 13.200.00 $ 213.410.00 $ $ 54,000.00 54,000.00 Current Liabilities Accounts Payable Total Liabilities Stockholder's Equity Common Stock Retained Eamings Total Stockholder's Equity Total Liabilities and Stockholder's Equity $ 12,000.00 147.410.00 $ 159.410.00 213.410.00