Using the below information, complete the following items, in the correct format:

Cost of new equipment	$1,000,000
Expected life of equipment in years	5
Disposal value in 5 years	$200,000
Life productionnumber of cans	27,500,000
Annual production or purchase needs	5,500,000
Initial training costs	0
Number of workers needed	6
Annual hours to be worked per employee	2,000
Earnings per hour for employees	$15.00
Annual health benefits per employee	$2,000
Other annual benefits per employee% of wages	15%
Cost of raw materials per can	$0.30
Other variable production costs per can	$0.10
Costs to purchase cansper can	$0.50
Required rate of return	11%
Tax rate	35%

Cost to Produce Make Purchase

Annual cost of direct material:

Need of XX cans per year X

Annual Cost of direct labor for employees:

Wages X

Benefits X

Health benefits X

Other Benefits X

Total wages and benefits X

Other variable production costs X

Total annual production costs X

Annual cost to purchase cans X

Cash Flows over the life of the project

Item Before tax amount tax effect after tax amount

Annual cash savings X X X

tax savings due to depreciation X X X

Total after-tax annual cash flow X

Playback Period x/x = X years

Simple rate of return

Accounting income as result of decreases costs

Annual cash savings X

less depreciation X

before tax income X

tax at 35% rate X

after tax income X

X / X = X%