Question: Data table Heavenly estimates it will be able to produce more candy using the second machine and thus increase its annual contribution margin. It also

 Data table Heavenly 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

Data table Heavenly 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. Requirements 1. Calculate the following for the new machine: a. Net present value b. Payback period c. Discounted payback period d. Internal rate of return (using the interpolation method) e. Accrual accounting rate of return based on the net initial investment (assume straight-line depreciation) 2. What other factors should Heavenly Candy consider in deciding whether to purchase the new machine

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