Uupital Decisloh Making Big Al gives his worker's a one hour lunch and twofifteen 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 $2,100. The machine should be usable for 6 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 9 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 $6.00 and Big Al believes that a price of $.60 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? (17.02) how many cans ofsodam ustbesoldeach yearto breakeven? Round upto zero places ### ###cans) - (17.03) Annual incremental cash inflows from the soda machine? (rounded to two places, s# ## (17.04) What is the paybackperiod in years? oundedto two places ##years) 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 17.07) Number you got carrect 35 Your grade 39 33 The question numbers with the ones you got correct (score 1) and wrong (score O) tollow ast First umbes PileComect Grade Present Value of Annuity $1.00 in Arrears Page 18 Interest Periods Rate 29.5% 1829 2185 30.096| 1816 45 2534 1.696 1.997 129 380% 1.630 1906 2 2035 : 168 1 589 | 1 849 | 40096| 06 1 1.6491790 1885 878 100 0%) 0 51 0938 0969 off the chart use 100% Page 18 Present Value of Annuity $1.00 in Arrears Interest Rate 3808 4.713 5.601 2856| 37621- 4 6461-5508 %) 2829 37171 4580 15417 3.5%) 28021 36731 4515 5329 40%) 2775 3630| 4452| 5242 45%) 2749| 3588| 4390 | 5158 50%) 2723 3546 4329 5076 51 0%) 1 391 1.5841711 2 1.368 1553 1.674 530%) 1.3601 1.5421 1662 -1.740 53 59 1352 1532| 1650 5% -2.698 3.505 4270 4996 60%) 2673 3465 | 4212 4917 6.5%) 2.648| 3.426 | 4156| 4841 7.0%) 2624 3387 4100 4767 7.5%) 2601| 3349| 4046 | 4694 80%| 2.577| 3.312 3993 4623 54 5%) 55.0% 13-1523 1 337 | 1 6381-1713 1.626 1 5131 ) 330 15031 1.615 1.687 555%). 1.323 1494 1604 1674 %) 1.315 1.484 | 1.59 1862 56 5% 570%) 1.301| 1.466 637 580%) 1287 1447 585%) 1.280 1439 5391 1602 1.3081475 1.581 8.5%) 2.554| 3276 | 3.941| 4554 90%) 2531| 3240| 3890| 4486 3.204 3.840 4.420 10.0%) 2487| 3170 3791| 4355 57 5% 1.294| 1457 |15601-1625 9.5%| 2.509 10.5%) 2465| 3136| 3743| 4292 110%) 2444| 3102| 3696| 4231 11.5%) 2423| 3070| 3650| 4170 120%) 2402 | 3037| 3605 | 4111 125%) 2381| 3006 | 3561| 4054 13.0%) 2361| 2.974| 3517| 3998 13.5%) 2.341| 2.944| 3475| 3943 14.0%) 2322| 2914| 3433| 3889 14.5%) 2.302| 2884| 3392| 3836 15.0%) 2.283 2855| 3.352| 3.784 15.5%) 2264| 2826 | 3313| 3734 1590 266 1.4211.5181.579 5901%|1.23 1.430 1.528| 1.430 60 5%) 1.2531 1.4041 1.4981 1.556 61.0%) 1247 615%) 1240| 1387| 1 62 0%) 1.234 62.5%) 1.227 | 1.371 1.459 | 1.513 63.0%) 1.221| 1362| 1449| 1.503 63 5%) 1.2141 1.354 1.440 1 1.492 1.395 1.488 1.545 1.379 1.4681.524 64,0%) 1.208 1.347| 1.431| 1482 645%) 1.202 1.3391 1.4221 1.472 65 0%) 1196| 1.331| 1.413 | 1.462 65 5%) 1.190| 1323| 1.404| 1.452 16.0%) 2.246| 2.798 | 3274| 3685 165%) 2.2281 2.701 3236| 3.636 170%) 2.21012743 319913.589 17.5%) 2192| 27161 3163 | 3543 180961 21741 26901 3.1 i 3498 185%) 2 71 2664| 3092| 3453 19.0%) 2140| 2639| 3058| 3410 19.5%) 2123 | 2631 3024 | 3367 200%) 2106 | 2589 | 2991| 3326 66.0% 66.5%) | 1.308| 1386| 1433 67 0%) 1172| 1.301| 1.378| 1.424 184 1.3161.3951.443 1.178 67.5%) 1166 | 1293 | 1.369 | 1.414 68 1.1601 1.2861 1.3611 1.405