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use the immage below for question and detils The Sweetwater Candy Company would like to buy a new machine that would automatically dip chocolates. The

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The Sweetwater Candy Company would like to buy a new machine that would automatically dip chocolates. The dipping operation is currently done largely by hand. The machine the company is considering costs $95,000. The manufacturer estimates that the machine would be usable for 12 years, but would require the replacement of several key parts at the end of the sixth year. These parts would cost $5,800, including installation. After 12 years, the machine could be sold for about $4,750. The company estimates that the cost to operate the machine will be only $6,000 per year. The present method of dipping chocolates costs $26.000 per year. In addition to reducing costs, the new machine will increase production by 4,000 boxes of chocolates per year. The company realizes a contribution margin of $1.00 per box. A 20% rate of return is required on all investments. Click here to view Exhibit 10-1 and Exhibit 10-2. to determine the appropriate discount factor(s) using tables. Required: 1. What are the net annual cash inflows that will be provided by the new dipping machine? Net annual cash Inflow 2. Compute the new machine's net present value using the incremental cost approach. (Round discount factor(s) to 3 decimal places.) Net present value EXHIBIT 10-1 Present Value of $1 F P (1+1) 185 266 Period 4% 58 65 8% 10% 125 14% 205 225 245 255 40% 1 0.962 0.9520,943 0.926 0909 0.893 0877 0.862 0.847 0.833 0.820 0.806 0.794 0.753 0769 0714 2 0.925 0.907 0990 0.857 0.826 0.797 0.769 0.743 0.715 0.694 0.672 0.650 0.000 0.00 0.592 OSIO 3 0.8590.864 0840 0.794 0751 0712 0.675 064 0.609 0579 0.351 0.524 0.500 0.477 0-455 0.364 4 08550823 0.792 0735 0683 0036 0.592 0352 0.516 0.482 0:4510423 0.3970373 03500 260 5 0.822 0.784 0747 0.031 0.621 0.567 0.519 0.476 0.437 0402 0.370 0.341 0.315 0291 0.269 0.156 6 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.3030.275 0.250 0227 0.207 0.133 7 0.750 0.711 0.665 0.583 0.313 0.4520.400 0.354 0314 0279 0.2490 222 0.1990173 0159 0.095 8 0731 06770627 0.540 0.467 0.404 0351 0.305 0266 0233 0 2040179 01570139 0.123 0065 9 070306450592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.167 0 144 0.125 0.105 0.091 0.048 10 06760614 0558 0.463 0.356 0.322 0.270 0227 0.191 0.163 0.1370116 0.099 00880073 0.035 11 0650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950-1620135 0.112 0.094 0.079 0.066 0056 0-025 12 0.625 0.557 0.497 0.397 0319 0 257 020901680-13701120093 0.076 0062 6052 0043 0015 13 0601 0.530 0469 0.368 0.2900229 0.1820 1450 1160093 0.075 0.061 0.050 0.00 0.033 0013 14 0.577 0.505 0442 0.340 0.263 0.205 0.160 0.125 0.099 0.075 0.062 0.049 0.039 0.032 0.025 0.009 15 0.355 0.481 0.417 0.315 0.239 0.130 0.140 0 105 0.054 0.005 0.051 0.0400031 0.025 0.0200.006 16 0534 0.455 0.394 0.292 0.218 0.163 0.125 0.093 0.0710054 0.042 0.032 0.025 00190015 0.005 17 05130436 0.371 0.270 0.1980146 0.10500800060005 0034 0.025 0.02000150012 0.003 18 0.494 0.416 0.350 0.250 0.180 0.130 0.093 0.069 0.051 0.0380028 0.021 0.0160.0120.000 0.002 19 0.475 0.396 0.331 0.232 0.164 0.116 0.053 0.000 0.0430031 0.0230.017 0.0120.009 0.007 0.002 20 0456 0.377 0312 0.215 0.149 0.104 0.073 0.051 0.037 0026 0.019 0.014 0.010 0.007 0.005 0.001 21 0439 0.359 0.294 0.199 0.135 0.093 0.064 0.044 0031 0.02200150011 0.008 0.006 0004 0001 22 0.422 0.342 0.278 0.154 0.123 0.083 0.056 0.035 0.026 0.018 0.013 0.009 0.006 0.064 0.003 0.001 23 0106 0326 0262 0.170 0.112 0.074 00190033 0.02200150010 0.0070005 0.003 0.002 24 0 3900 3100247 0.158 0.1020066 0.04300280019 0013 0.005 0.006 0004 0.003 0.002 25 0.375 0.295 0233 0.146 0.092 0.059 0.035 0.024 0.01601000070005 0.0030002001 26 0 361 0.281 0.220 0.135 0.054 0.053 0033 0.021 0.014 0.000 0.006 0004 0.002 0002 0001 27 0347 0 263 0.207 0.125 0.076 0.047 0 029 00180011 0007 0.005 0.003 0.002 0.001 0.001 28 0.333 0.255 0196 0 116 0 069 0.042 0026 0016 0.00 0.006 0.00+ 0.002 0.002 0.001 0.001 29 0321 0.243 0.185 0.107 0063 0.037 0022 0.014 0.008 0.005 0.003 0.002 0.001 0001 30 0.308 0231 0.174 0.099 0.057 0.033 0.02000120007 0004 00030002 0.001 0001 40 0.208 0.142 0097 0.046 0.022 0.011 0.003 0.003 0.001 0.001 EXHIBIT 10-2 Present Value of an Annuity of $1 -- (ton] Period 49 SS 6% 58 1 0.962 0.943 0.926 0.952 1.859 2 1556 1.833 1.783 1566 3 2.775 2723 2673 2.577 4 16.30 3546 3.465 3312 5 4.330 4.212 3993 6 5.242 5.076 +917 5.582 4623 5.200 7 0.002 5.756 S 6.733 6.463 0.210 5.747 6 7.433 7.105 6,502 6247 COC 10 8.111 7.722 7.360 6710 TO 11 8.760 8.306 7.537 7130 6.193 SETZ 12 9385 8.863 5.394 7.536 13 9986 to 6 8.850 7904 14 10 563 9.999 9.295 8.244 15 11118 10.350 9.712 8.559 10% 125 149 16% 185 20% 225 245 26% 285 305 40% 0.909 0.893 0.877 0.862 0347 0.833 0.520 0.806 0.794 0.751 0.769 0.714 1.736 1690 1647 1.605 1.528 1.4921457 1.424 1.392 1.361 1.224 2.437 2402 23222.246 2.174 2.106 2042 1981 1923 1868 1816 1.589 3.170 3037 2.914 2.798 2690 2.539 2.494 2.40: 2320 2241 2166 1879 3.791 3.605 3.433 3274 3.127 2991 2364 2745 2635 2.532 2436 2035 4335 4.111 3.599 3.685 3.495 3.326 3.167 3.0202885 2.759 2.643 2.168 4.865 4.564 +255 4.039 3.312 3.603 3.416 3.242 3.053 3937 2.802 2.263 5.335 +968 +639 4344 4.075 3.837 3.619 3.421 3.241 3.076 2.925 2.331 5.759 $325 4.946 4607 4031 3.756 3.366 3366 3.154 3.019 2379 6.145 5.650 5216 4333 4 1923 923 36623.465 3.269 3.092 2414 3933 5453 5029 4656 43274035 3.776 3.544 3 335 3.147 6.314 6.194 5.660 5.197 4.793 4.4394.127 3.551 3.606 3.387 3.190 2.456 7.103 6.424 5.842 5.342 4.910 4.5334203 3.912 3656 3.427 3223 2.468 7.3676625 6 002 5.468 5.006 4.611 4.265 3.9623695 3.459 3.249 2.477 7606 6811 6.142 5.575 5.0924675 4 315 4001 3.726 3.483 32682454 7.824 6.974 6.265 5.669 5.162 4.730 4.357 4033 3751 3.503 3283 2.499 80227.120 6373 5.749 5222 4775 4391 4059 3.771 3518 3.295 2.192 5201 7.250 6.167 5.518 5.273 48124419 4080 3 756 3529 3.30+ 2.494 $365 7366 6550 5.8775316 4.84 4.442 4,097 3.799 3539 3:311 2496 8 514 7469 6.623 5.929 5.353 4.870 4.400 +110 3546 3.316 2497 7562 6.6875973 5354 4.591 4.476 4121 3 816 3.551 3.320 2.498 8.772 7645 6 7436011 5.410 4909 1.458 1.130 3.822 3.556 3323 2.193 3.853 7.718 6 792 6.792 6.04 5.432 4.925 4.499 4.137 3.827 3.325 2.499 8.955 7.734 6.335 6 835 6073 3.451 4937 4507 4.143 3.531 3.327 2499 9.077 7.543 6573 6 8736997 5467 4.948 4514 4.147 3.834 3.329 2.499 9.161 7.896 6.900 6906 6118 5.450 4956 4520 4151 3.82 3.330 2.500 9237 7943 6935 6.935 6.136 3.492 +964 4.525 4.154 3.639 3.331 2.500 9307 7984 6961 6.961 6 152 5.502 4970 4528 4157 3.340 3.331 2.500 9 370 8.022 6.983 69836.166 5.510 49754531 4.159 3.841 3.332 2.500 9427 7.003 7.003 6.17 5.517 49794534 4.160 3.842 3.332 2.500 9.7798.244 7.105 7.105 6234 5.5484997 4544 4166 3 846 3.333 2500 16 11.652 10.838 8 851 12.166 17 15 11274 11 690 10.106 10477 10525 9.122 9372 12 659 19 13.134 9604 12.085 12 462 11158 11470 20 13.590 9.818 21 14029 12.821 11.764 10.017 619 S 14-451 13.163 12042 10 201 23 H857 13.489 12 303 10 371 24 15.247 13799 12 550 10.529 25 15.022 14.094 10.073 12.783 13.003 26 15.983 14.375 10.810 27 16.330 14643 13211 10935 28 16 663 14 898 13.406 11051 29 16.984 15.141 13.591 11.158 30 17292 15.373 11 258 SSOS 13.705 15.046 40 19.793 17 159 11 925

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