Enternal Rate of Return Method-Two Projects for a contribution margin of $0.38. The delivery truck operating expenzes, excluding depreciation, are 50.52 per mile for 14,000 miles Cousin's has funds to invast in only one of tha projects Snack Company is considering two possible investments: a delivery truck or a bagging machine. The d elivery truck would cost 541.234.40 and could be used to deliver an addaional 41.000 baga of re 250 operating davs in the year Both the truck and the bagging machise are estimated to have aight-year lives pratzals per year. Each bag of pretze's can be a would require three fewer houre of direct labor per day. Diret labor is $15 per hour. There por yeer. The bagging maching would replace an old bagging machine, and its net investmant cost would be $50 478.75 The ne However, . The minimum rate a"return is 14%. Present Value of an Annuity of $I at Compound Interest Year 6% 10% 12% 15% 20%