U Question 28 25 pts Cocoa and Cookies Inc. is planning to add a new product to its line. To manufacture this product, the company will need to purchase a new machine costing $610,000 with an expected 5-year melut He and a $60.000 lage value For this company, all sales are for cash and all costs are out of pocket, except for depreciation on the new machine, Sales and cost information Expected annual sales of new product $1775.000 Expected annual costs of new product: Direct Materials $385,000 Direct Labor 5360.000 Overhead (does not include depreciation $250,000 Selling and Administrative Expenses $145.000 Income Taxes 21% FIA 13 Canvas B IB . BR BE EN IT un Irene B LI LRT IN -01 RO ta 11 10 106 an LA ar I FRED LEH 1 WIR IR TA ONE NE TE W BA 22 HRB LE sam WE RED CER NE BAN TT TH IN LI BE RT ED 1 LINS ro NE SIT BEN che SRO Wh DECO TE HOME 214 SEED INIS BBM som BA s wo TABLE 114 IM BE WE LE TRI 16 MO MUT HT WILT CHE IMTE 47 ar 1 100 am LE 1101 W O SEN CINE worms ON LR WMS . Tas VE ni DRUM MONTE TON TIPE IN 1125 CE LI ti W 10 SUS MER MES BE RS ED RE 18 WT NIE LE 1 MINE JE WE WA M BON 00401 Required 1. Compute straight-line depreciation for the new machine (3 points) 2. Determine net income for each year. (5 points) 3. Determine net cash flow for each year, (4 points) 4 Compute the machine's payback period, assume cash flows occur evenly. (4 points) 5. Compute the accounting rate of return, (4 points) 6. Compute net present value assuming a 10% discount rate (5 points)