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Fabulous Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Fabulous has accumulated regarding the new machine is: (Click the icon to view the information.) Read the requirements Cost of the machine $100,000 Increased contribution margin Life of the machine Required rate of return $22,000 8 years 16% Fabulous estimates they will be able to produce more candy using the second machine and thus increase their annual contribution margin. They also estimate 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 vear-end vestment amounts except for initial in 1. Calculate the following for the new machine: a. b. c. d. e. Net present value Payback period Discounted payback period Internal rate of return (using the interpolation method) Accrual accounting rate of return based on net initial investment (assume straight-line depreciation) 2. What other factors should Fabulous Candy consider in deciding whether to purchase the new machine