Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the internal rate of return. Pick the closest interest rate from the tables on page 18. {17.07} How many cans of soda must
What is the internal rate of return. Pick the closest interest rate from the tables on page 18. {17.07} How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) {17.03} 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, #.##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. Capital Decision Making Big Al gives his worker's a one hour lunch and two 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 $2,250. The machine should be sable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 15 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 $5.52 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? 3,750 cans {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) $ 0.37 {17.02} How many cans of soda must be sold each year to breakeven? (Round up to zero places, ######cans) {17.03} What is the internal rate of return. Pick the closest interest rate from the tables on page 18. {17.07} How many cans of soda must be sold each year to breakeven? (Round up to zero places, ###,### cans) {17.03} 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, #.##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. Capital Decision Making Big Al gives his worker's a one hour lunch and two 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 $2,250. The machine should be sable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 15 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 $5.52 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? 3,750 cans {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) $ 0.37 {17.02} How many cans of soda must be sold each year to breakeven? (Round up to zero places, ######cans) {17.03}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started