You have recently been hired as an accountant by the Sweetwater Candy Company operating in Fort Collins. The Sweetwater Candy Company works with a local manufacturer to produce boxes of assorted chocolates that it sells for $25 per box. Sweetwater makes some seasonal, specialty chocolates during Colorado's peach and cherry seasons that have become favorites of locals and tourists. You have been asked to get involved with the budget preparation for next year and to use the information to make decisions. The budget process is already underway, and the accounting team has worked with the sales and marketing team to develop the following sales budget for next year: Sales Budget Selling price per unit January February March April May June July August September October November December Total Annual Sales Units 1,200 1,000 1,600 1,400 1,600 2,000 2,000 2,500 2,100 1,500 1,300 1,800 20,000 $25.00 Dollar Sales $ 30,000 $ 25,000 $ 40,000 $ 35,000 $ 40,000 $ 50,000 $ 50,000 $ 62,500 $ 52,500 $ 37,500 $ 32,500 $ 45,000 $ 500,000 Required: Work through the worksheets in this Excel workbook to complete the required calculations and analyses. Provide explanations as instructed. While preparing its budget for next year, the Sweetwater Candy Company is planning for a capital expenditure on a delivery truck in March of next year. To determine how much that expenditure will be, you must evaluate the following two options. Option #1: Keep old delivery truck and overhaul it. If the company keeps and overhauls its old truck, it will be used for five more years and then discarded (no salvage value). Option #2: Buy new delivery truck and sell old truck. If a new delivery truck is purchased now, it will be used for 10 years, after which it will be traded in at its salvage value for another new truck. The new truck would be diesel and cost less to operate resulting in an increase in expected annual cash flows, as shown below. The old truck would be sold now at its salvage value. Management requires investments to have a payback period of 5 years, and it requires a 16% return on its investments. The company has assembled the following information: Old Truck N/A New Truck $50,000 Purchase cost now Cost of overhaul needed now $18,000 N/A Annual expected cash flows generated $5,500 $3,000 + $8,500 $8,500 N/A Salvage value now Salvage value in ten years N/A $6,000 Required: (A.) Calculate the Payback Period, Net Present Value, and Internal Rate of Return for the two options. (B.) Which investment should the company choose? Explain