Please help with 17.03 (4592 is not the correct answer for 17.03) and 17.06

Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $2,250. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 11 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.24 and Big Al believes that a price of $.75 per can would win him good will. What is the estimated annual sales in cans of soda? 2,750 cans {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) $ 0.49 {17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, ######cans) {17.03} Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) $ 1,347.50 {17.04} What is the payback period in years? (rounded to two places, #.##years) 1.67 years {17.05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18. {17.06) What is the internal rate of return. Pick the closest interest rate from the tables on page 18. 36.00% {17.07} Interest Periods Interest Periods Rate 5 20% 2.884 3.808 4.713 5.601 2.5% 2.856 3.762 4.646 5.508 3.0% 2.829 3.717 4.580 5.417 35% 2.802 3.673 4.515 5.329 2.775 3.630 4.452 5.242 4.5% 2.749 3588 4.390 5.15.8 50% 2.723 3546 4.329 5,076 55% 2.698 3.505 4.270 4.996 2.673 3.465 42121 4.917 6.5% 2.648 3.426 4.156 4.841 70% 2.624 3.387 4.100 4.767 7.5% 2.6011 3.349 4046 4.694 8.0% 2,5771 3.312 3.993 4.623 8.5% 2.554 3.276 3.941 4.554 90% 25311 3240 3.890 4.486 9.5% 2.509 3.204 3.840 4.420 10.0% 2487 3.170 3.791 4.355 10.5% 2.465 3.136 3.743 4.292 11.0% 2.444 3.102 3696 4.231 11.5% 2.423 3.070 3.650 4.170 120% 2.402 3.037 3.605 4.111 125% 2.381 3.006 3.561 4.054 13.0% 2361 2.974 3.517 3998 13.5% 2.341 2.944 3.475 3.943 14.0% 2.322 2.914 3.433 3.889 14.5% 2.302 2.884 3.392 3.836 15.0% 2.283 2.855 3.352 3.784 15.5% 2.264 2.826 3,313 3.734 16.0% 2.246 2.798 3.274 36.85 16.5% 2228 2.770 3.236 3.636 17.0% 2.210 2.743 3.199 3.589 17.5% 2,192 2.716 3.163 3.543 18.0% 2.174 2.690 3.127 3.498 18.5% 2.157 2.664 3.092 3.453 19.0% 2.140 2.6.39 3.058 3.410 19.5% 22123 2.613 3.024 3.367 20.0% 2.106 2.589 2.991 3.326 20.5% 2.090 2564 2.958 3285 2110% 2.074 2540 2.926 3.245 21.5% 205.8 2517 2.895 3205 22.0% 2.042 2.494 2.864 3.167 22.5% 2.027 2.471 2.833 3.129 23.0% 2011 2.448 2.803 3.092 23.5% 11.996 2.426 2.774 3,056 24.0% 1.981 2404 2.745 3020 24.5% 1.967 2.383 2.717 2.986 25.0% 1.952 2.362 2.689 2.951 25.5% 1.938 2341 2.6.62 2918 26.0% 1.923 2.320 2.635 2.885 26.5% 1.909 2.300 2.609 2.853 27.0% 1.896 2.280 2.583 2.821 27.5% 1.882 2.260 2.557 2.790 28.0% 1.868 2.241 2532 2.759 28.5% 1.855 2.222 2507 2.729 29.0% 1.842 2.203 2483 2.700 29.5% 1.829 2.185 2.459 2.671 30.0% 1.816 2.166 2.436 2.643 30.5% 1.803 2.148 2412 2.615 31.0% 1.791 2.130 2.390 2588 31.5% 1.779 2.113 2.367 2.561 32.0% 1.766 2.096 2.345 2.534 32.5% 1.754 2.079 2.324 2.508 33.0% 1.742 2.062 2.302 2483 33.5% 1.730 2045 2.281 2.458 34.0% 1.719 2.029 2.260 2.433 345% 1.707 2.013 2.240 2.409 35.0% 1.696 1.997 2220 2.385 35.5% 1.685 1.981 2.200 2.362 36.0% 11.673 1.966 2.1811 36.5% 1.662 1.951 2.162 2.316 37.0% 1.652 1.935 2.143 2.294 37.5% 1.641 1.921 2.124 2272 38.0% 1.630 1.906 22106 2.251 38.5% 1.620 11.892 2.088 2.229 39.0% 1.609 1.877 2.070 2.209 39.5% 1.599 1.863 2052 2.188 40.0% 1.589 1.849 2035 2.168 40.5% 1.579 11.836 2018 2.148 1.569 1.822 2.001 2.129 41.5% 1.559 1.809 1.985 2.109 420% 1.549 1.795 1.969 2091 42.5% 1.540 1.782 1.953 2.072 43.0% 1.5.30 1.769 1.937 2054 43.5% 1.521 1.757 1.921 2036 44.0% 1.512 1.744 1.906 2018 44.5% 1.502 1.732 1.890 2.000 45.0% 1.493 1.720 1.876 1.983 455% 1.484 1.707 1.861 1.966 46.0% 1.475 1.695 1.846 1.949 46.5% 1.467 1.684 1.832 47.0% 1.458 1.672 1.818 1.917 47.5% 1.449 1.660 1.804 1.901 48.0% 1.441 1.649 1.790 1.885 48.5% 1432 1.776 1.870 49,0% 1.424 1.627 1.763 1.854 49.5% 14161 1.616 1.750 1.839 50.0% 1407 16051 1.737 1.824 Rate 3 4 5 50.5% 1.399 1.594 1.724 51.0% % 1.391 1.584 1.711 51.5% 1.383 1.573 1.698 52.0% 1.375 1.563 11.686 52.5% 1.36.8 1.553 1.674 53.0% 1.360 1.542 1.662 53.5% 1.352 1.532 1.650 54.0% 1.345 1.523 54.5% 1.337 1.513 1.626 55.0% 1.330 1.503 11.615 55,5% 1.323 1.494 1.604 56.0% 1.315 1.484 1.592 56,5% 1.308 1.475 1581 57.0% 1.301 1.466 1.570 57.5% 1.294 1.457 1.560 58.0% 1.287 1.447 1.549 58.5% 1.280 1.439 1.539 59,0% 1.273 1.430 1.528 59.5% 1.266 1.421 1.518 60.0% 1.260 1.412 1.500 60.5% 1.253 1.404 1.498 61.0% 1.247 1.395 1.488 61.5% 1.240 1.387 1.478 62.0% 1.234 1.379 1.468 62.5% 1.227 1.371 1.459 63.0% 1.221 1.362 1.449 63.5% 1.214 1.354 1.440 64.0% 1.208 1.347 1.431 64.5% 1.202 1.339 1.422 65.0% 1.196 1.331 1413 655% 1.190 1.323 1.404 66.0% 1.184 1.316 1.395 66.5% 11178 1.308 | 1.386 67.0% 121721 1.301 | 1.378 67.5% 1.166 1.293 1.369 68.0% 1.160 1.286 1.361 68.5% 1.155 1.279 1.352 69,0% 1.149 1.272 1.344 69.5% 1.14.3 1.265 1.336 70.0% 1.138 1.258 1.328 70.5% 1.132 1.251 1.320 7110% 1.127 1.244 1.312 71.5% 1.121 1.237 11.304 720% 1.230 1.297 72.5% 1.224 1289 73.0% 1.105 1.217 1.281 73.5% 1.100 1.210 1.274 74.0% 1.095 1.204 1.267 74.5% 11.090 1.198 1.259 75.0% 1.085 1.191 1.252 755% 1.079 12185 1.245 76.0% 1.074 1.179 1.238 76.5% % 1.069 1.172 1.231 77,0% 1.064 1.166 1.224 77.5% 1.060 1.160 1.217 78.0% 1.055 1.154 1.210 78.5% 1.050 1.148 1.204 79,0% 1.045 1.143 1.197 79.5% 1.040 12137 1190 80.0% 1.036 1.131 1.184 80.5% 1.031 1.125 1.177 81.0% 1.026 1.120 1.171 81.5% 1.022 1.114 1.165 82.0% 1.017 1.108 1.158 82.5% 1.013 1.103 1.152 83.0% 1.008 1.097 1.146 83.5% 1.004 1.092 1.140 84.0% 0.999 1.087 1.134 84.5% 0.995 1.081 1.128 85.0% 1 0.991 11.076 1.122 85,5% 0.986 1.071 1.116 86.0% 0.982 11.066 1.111 36.5% 0.978 1.061 1.105 87,0% 0.974 11.055 1.099 87.5% 0.969 1.050 1.094 BB0% 0.965 11.045 1088 BB.5% 0.961 1.040 1.082 89.0% 0.957 1036 1.077 89.5% 0.95.3 1.031 1072 90,0% 0.949 11.026 11.066 90.5% 0.945 1021 1.061 91.0% 0.941 11.016 1.056 91.5% 0.937 11.012 11.050 92.0% 0.933 1.007 11.045 92.5% 0.930 1.002 1.040 93.0% 0.926 0.998 1.035 93.5% 0.922 0.993 1030 94.0% 0.918 0.989 1.025 94.5% 0.914 0.984 1.020 95.0% 0.911 0.980 1.015 95.5% 0.907 0.975 1.010 96.0% 0.903 0.971 1006 96.5% 0.900 0.967 1.001 97,0% 0.896 0.962 0.996 97,5% 0.893 0.958 0.992 0.889 0.954 10.987 98.5% 0.885 0.950 0.982 99.0% 0.882 0.946 0.978 99.5% 0878 0.942 0.973 100.0% 0.875 0.9381 0.969 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.378 1.369 1.361 1.352 1.344 1.335 1.327 1.319 1.3111 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1.249 1.242 1.235 1.227 1.220 1.213 1.206 1.199 1.193 1.186 1.179 1.173 1.166 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 11.093 11.087 1082 11.076 1.071 11.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 Ifoff the chartuse 100% Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a cold soda machine would be appreciated by his workers, and an appreciated worker is a good worker. He has priced a machine at a national member only warehouse for $2,250. The machine should be usable for 3 years, after which it would be inefficient, obsolete and would have to be disposed of at the dump. Big Al believes that 11 cans a day will be purchased. The plant is open five days a week, 50 weeks per year. A case of soda (24 cans) costs $6.24 and Big Al believes that a price of $.75 per can would win him good will. What is the estimated annual sales in cans of soda? 2,750 cans {17.01} What is the contribution margin per can of soda? (rounded to two places, $#.##) $ 0.49 {17.02) How many cans of soda must be sold each year to breakeven? (Round up to zero places, ######cans) {17.03} Annual incremental cash inflows from the soda machine? (rounded to two places, $#.##) $ 1,347.50 {17.04} What is the payback period in years? (rounded to two places, #.##years) 1.67 years {17.05) If the time value of money is 12% per year what is the net present value? Use the tables on page 18. {17.06) What is the internal rate of return. Pick the closest interest rate from the tables on page 18. 36.00% {17.07} Interest Periods Interest Periods Rate 5 20% 2.884 3.808 4.713 5.601 2.5% 2.856 3.762 4.646 5.508 3.0% 2.829 3.717 4.580 5.417 35% 2.802 3.673 4.515 5.329 2.775 3.630 4.452 5.242 4.5% 2.749 3588 4.390 5.15.8 50% 2.723 3546 4.329 5,076 55% 2.698 3.505 4.270 4.996 2.673 3.465 42121 4.917 6.5% 2.648 3.426 4.156 4.841 70% 2.624 3.387 4.100 4.767 7.5% 2.6011 3.349 4046 4.694 8.0% 2,5771 3.312 3.993 4.623 8.5% 2.554 3.276 3.941 4.554 90% 25311 3240 3.890 4.486 9.5% 2.509 3.204 3.840 4.420 10.0% 2487 3.170 3.791 4.355 10.5% 2.465 3.136 3.743 4.292 11.0% 2.444 3.102 3696 4.231 11.5% 2.423 3.070 3.650 4.170 120% 2.402 3.037 3.605 4.111 125% 2.381 3.006 3.561 4.054 13.0% 2361 2.974 3.517 3998 13.5% 2.341 2.944 3.475 3.943 14.0% 2.322 2.914 3.433 3.889 14.5% 2.302 2.884 3.392 3.836 15.0% 2.283 2.855 3.352 3.784 15.5% 2.264 2.826 3,313 3.734 16.0% 2.246 2.798 3.274 36.85 16.5% 2228 2.770 3.236 3.636 17.0% 2.210 2.743 3.199 3.589 17.5% 2,192 2.716 3.163 3.543 18.0% 2.174 2.690 3.127 3.498 18.5% 2.157 2.664 3.092 3.453 19.0% 2.140 2.6.39 3.058 3.410 19.5% 22123 2.613 3.024 3.367 20.0% 2.106 2.589 2.991 3.326 20.5% 2.090 2564 2.958 3285 2110% 2.074 2540 2.926 3.245 21.5% 205.8 2517 2.895 3205 22.0% 2.042 2.494 2.864 3.167 22.5% 2.027 2.471 2.833 3.129 23.0% 2011 2.448 2.803 3.092 23.5% 11.996 2.426 2.774 3,056 24.0% 1.981 2404 2.745 3020 24.5% 1.967 2.383 2.717 2.986 25.0% 1.952 2.362 2.689 2.951 25.5% 1.938 2341 2.6.62 2918 26.0% 1.923 2.320 2.635 2.885 26.5% 1.909 2.300 2.609 2.853 27.0% 1.896 2.280 2.583 2.821 27.5% 1.882 2.260 2.557 2.790 28.0% 1.868 2.241 2532 2.759 28.5% 1.855 2.222 2507 2.729 29.0% 1.842 2.203 2483 2.700 29.5% 1.829 2.185 2.459 2.671 30.0% 1.816 2.166 2.436 2.643 30.5% 1.803 2.148 2412 2.615 31.0% 1.791 2.130 2.390 2588 31.5% 1.779 2.113 2.367 2.561 32.0% 1.766 2.096 2.345 2.534 32.5% 1.754 2.079 2.324 2.508 33.0% 1.742 2.062 2.302 2483 33.5% 1.730 2045 2.281 2.458 34.0% 1.719 2.029 2.260 2.433 345% 1.707 2.013 2.240 2.409 35.0% 1.696 1.997 2220 2.385 35.5% 1.685 1.981 2.200 2.362 36.0% 11.673 1.966 2.1811 36.5% 1.662 1.951 2.162 2.316 37.0% 1.652 1.935 2.143 2.294 37.5% 1.641 1.921 2.124 2272 38.0% 1.630 1.906 22106 2.251 38.5% 1.620 11.892 2.088 2.229 39.0% 1.609 1.877 2.070 2.209 39.5% 1.599 1.863 2052 2.188 40.0% 1.589 1.849 2035 2.168 40.5% 1.579 11.836 2018 2.148 1.569 1.822 2.001 2.129 41.5% 1.559 1.809 1.985 2.109 420% 1.549 1.795 1.969 2091 42.5% 1.540 1.782 1.953 2.072 43.0% 1.5.30 1.769 1.937 2054 43.5% 1.521 1.757 1.921 2036 44.0% 1.512 1.744 1.906 2018 44.5% 1.502 1.732 1.890 2.000 45.0% 1.493 1.720 1.876 1.983 455% 1.484 1.707 1.861 1.966 46.0% 1.475 1.695 1.846 1.949 46.5% 1.467 1.684 1.832 47.0% 1.458 1.672 1.818 1.917 47.5% 1.449 1.660 1.804 1.901 48.0% 1.441 1.649 1.790 1.885 48.5% 1432 1.776 1.870 49,0% 1.424 1.627 1.763 1.854 49.5% 14161 1.616 1.750 1.839 50.0% 1407 16051 1.737 1.824 Rate 3 4 5 50.5% 1.399 1.594 1.724 51.0% % 1.391 1.584 1.711 51.5% 1.383 1.573 1.698 52.0% 1.375 1.563 11.686 52.5% 1.36.8 1.553 1.674 53.0% 1.360 1.542 1.662 53.5% 1.352 1.532 1.650 54.0% 1.345 1.523 54.5% 1.337 1.513 1.626 55.0% 1.330 1.503 11.615 55,5% 1.323 1.494 1.604 56.0% 1.315 1.484 1.592 56,5% 1.308 1.475 1581 57.0% 1.301 1.466 1.570 57.5% 1.294 1.457 1.560 58.0% 1.287 1.447 1.549 58.5% 1.280 1.439 1.539 59,0% 1.273 1.430 1.528 59.5% 1.266 1.421 1.518 60.0% 1.260 1.412 1.500 60.5% 1.253 1.404 1.498 61.0% 1.247 1.395 1.488 61.5% 1.240 1.387 1.478 62.0% 1.234 1.379 1.468 62.5% 1.227 1.371 1.459 63.0% 1.221 1.362 1.449 63.5% 1.214 1.354 1.440 64.0% 1.208 1.347 1.431 64.5% 1.202 1.339 1.422 65.0% 1.196 1.331 1413 655% 1.190 1.323 1.404 66.0% 1.184 1.316 1.395 66.5% 11178 1.308 | 1.386 67.0% 121721 1.301 | 1.378 67.5% 1.166 1.293 1.369 68.0% 1.160 1.286 1.361 68.5% 1.155 1.279 1.352 69,0% 1.149 1.272 1.344 69.5% 1.14.3 1.265 1.336 70.0% 1.138 1.258 1.328 70.5% 1.132 1.251 1.320 7110% 1.127 1.244 1.312 71.5% 1.121 1.237 11.304 720% 1.230 1.297 72.5% 1.224 1289 73.0% 1.105 1.217 1.281 73.5% 1.100 1.210 1.274 74.0% 1.095 1.204 1.267 74.5% 11.090 1.198 1.259 75.0% 1.085 1.191 1.252 755% 1.079 12185 1.245 76.0% 1.074 1.179 1.238 76.5% % 1.069 1.172 1.231 77,0% 1.064 1.166 1.224 77.5% 1.060 1.160 1.217 78.0% 1.055 1.154 1.210 78.5% 1.050 1.148 1.204 79,0% 1.045 1.143 1.197 79.5% 1.040 12137 1190 80.0% 1.036 1.131 1.184 80.5% 1.031 1.125 1.177 81.0% 1.026 1.120 1.171 81.5% 1.022 1.114 1.165 82.0% 1.017 1.108 1.158 82.5% 1.013 1.103 1.152 83.0% 1.008 1.097 1.146 83.5% 1.004 1.092 1.140 84.0% 0.999 1.087 1.134 84.5% 0.995 1.081 1.128 85.0% 1 0.991 11.076 1.122 85,5% 0.986 1.071 1.116 86.0% 0.982 11.066 1.111 36.5% 0.978 1.061 1.105 87,0% 0.974 11.055 1.099 87.5% 0.969 1.050 1.094 BB0% 0.965 11.045 1088 BB.5% 0.961 1.040 1.082 89.0% 0.957 1036 1.077 89.5% 0.95.3 1.031 1072 90,0% 0.949 11.026 11.066 90.5% 0.945 1021 1.061 91.0% 0.941 11.016 1.056 91.5% 0.937 11.012 11.050 92.0% 0.933 1.007 11.045 92.5% 0.930 1.002 1.040 93.0% 0.926 0.998 1.035 93.5% 0.922 0.993 1030 94.0% 0.918 0.989 1.025 94.5% 0.914 0.984 1.020 95.0% 0.911 0.980 1.015 95.5% 0.907 0.975 1.010 96.0% 0.903 0.971 1006 96.5% 0.900 0.967 1.001 97,0% 0.896 0.962 0.996 97,5% 0.893 0.958 0.992 0.889 0.954 10.987 98.5% 0.885 0.950 0.982 99.0% 0.882 0.946 0.978 99.5% 0878 0.942 0.973 100.0% 0.875 0.9381 0.969 6 1.810 1.795 1.781 1.767 1.753 1.740 1.726 1.713 1.700 1.687 1.674 1.662 1.649 1.637 1.625 1.613 1.602 1.590 1.579 1.567 1.556 1.545 1.534 1.524 1.513 1.503 1.492 1.482 1472 1.462 1.452 1.443 1.433 1.424 1.414 1.405 1.396 1.387 1.378 1.369 1.361 1.352 1.344 1.335 1.327 1.319 1.3111 1.303 1.295 1.287 1.279 1.272 1.264 1.256 1.249 1.242 1.235 1.227 1.220 1.213 1.206 1.199 1.193 1.186 1.179 1.173 1.166 1.160 1.153 1.147 1.141 1.135 1.129 1.123 1.117 1.111 1.105 1.099 11.093 11.087 1082 11.076 1.071 11.065 1.060 1.054 1.049 1.044 1.039 1.033 1.028 1.023 1018 1.013 1.008 1.003 0.999 0.994 0.989 0.984 Ifoff the chartuse 100%