Yummy Candy Company is considering purchasing a second chocolate dipping machine in order to expand its business. The information Yummy has accumulated regarding the new machine is:

$($Click the icon to view the information.$)$

Present Value of $$1$ table

Present Value of Annuity of $$1$ table

Future Value of $$1$ table

Future Value of Annuity of $$1$ table

Read the requirements.

Data table

Requirement $1.$ Calculate the following for the new machine:

a$.$ Net present value $($NPV$)($Use factors to three decimal places,

X$.$XXX$,$ and use a minus s

rounded to the nearest whole dollar.$)$

The net present value is

b$.$ Payback period $($Round your answer to two decimal places.$)$

The payback period in years is

c$.$ Discounted payback period $($Round interim calculations to the nearest whole dollar. Rour

Yummy estimates it will be able to produce more candy using the second machine

and thus increase its annual contribution margin. It also estimates there will be a

small disposal value of the machine but the cost of removal will offset that value.

Ignore income tax issues in your answers. Assume all cash flows occur at year$-$end

except for initial investment amounts.