15C

o Bock C Internal Rate of Return Method --Two Projects Surahn Foods Inc. is considering two possible investments a delivery truck or a bagoing machine. The delivery truck would cost $30.931.80 and could be used to detection 45,000 bags of taquitos chips per year Ench bag of chips can be sold for contribution margin of 10.8. The divery truck operating expenses, excluding preto, are mile for 15,000 miles per year. The bagging machine would replace an old bagging machine, and its net investment cost would be $20,350 00. The new machine wote fewer hours of direct labor per day. Direct laboris $10 per hour. There are 250 operating days in the year. Both the track and the being machine are estimated to have see The minimum rate of return is 1946. However, Sarah Foods has funds to invest in only one of the projects. Present Value of an Annuity of si at Compound Interest Year 109 129 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1 690 1.625 1.520 2.673 2.47 2.402 2.283 2. 106 3.465 3120 3.037 2.855 2589 5 4,212 3.791 3.605 3.50 2.991 4.917 4355 2136 5.58 136 4.554 4160 3505 6.210 5.335 4.560 3.837 6.00 5.759 SB 722 4031 7.360 6:145 5.650 5019 3192 4 10 $1. Enter the present value factor three decades. a. Compute the rate of return for each investment Use the above table of 6 4.614 4.917 5.582 3.605 4.111 3.355 3.785 3.791 4.355 4.868 5.335 7 B 4.564 4.968 2.99: 3.326 3.GOS 3.837 4.031 4.160 4.487 4.272 5.019 6.210 6802 9 5.759 10 5.328 5.650 7.360 6.145 4,192 a. Compute the internal rate of return for each investment. Use the above table of present of any of $1. Enter the present value factor to three decimal Delivery Truck Bagging Machine Present value factor Internal rate of return b. Which of the following should be included in a memoto management regarding the recommendation but the two projet Check My Workmore Check My Work uses renang All work savet 11:53