Question: Question Help regarding the new mache o e Heavenly Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business.





Question Help regarding the new mache o e Heavenly Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Heavenly has com BB Cack the icon to view the information) Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Anuty of table Read the requirements Requirement 1. Calculate the following for the new machine: a. Net present value (NPV) (Use factors to three decimal places, XXX, and use a minussion or parentes for a negative nel presenteEnter the net present value of the investment rounded to the whole dollar) The net present value is $ i 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 net initial investment (assume straight-line depreciation) 2. What other factors should Heavenly Candy consider in deciding whether to purchase the new machine? Print Done To complete renco Periods 2 5 sent Value of $1 riods 2% 4% 6% 8% 10% 1 0 9800962 0.943 092 0909 2 0 .961 0.925 0.890 0.857 0.826 3 0 .9420389 0.840 0.794 0.751 4 0924 085 0.792 0.735 0.683 5 0.9060822 0.747 0.681 0.621 8 08.880.790 0.705 0.6300.584 0.871 0.780 0.655 0.583 0.513 B 0.853 0.731 0.627 0.540 0.467 19 0 .837 0.703 0.592 0.500 0.424 10 0 820 0.675 0 558 0.453 0.385 11 0.804 0.650 0.527 0.429 0.350 12 0.788 0.625 0.497 0.397 0.319 0.773 0 601 04690 388 0290 14 0.758 0.577 0.442 0.340 0.283 0.743 0.555 0.417 0.315 0239 18 0.728 0534 0394 0292 0218 0714 0.513 0.3710 270 0.19 0.700 0. 44 0.350 0.250 0.10 19 06850475 0331 0232 0.14 0.673 0.456 0312 0215 0.149 21 0.660 0.439 0.294 0.19 0.135 12% 0.893 0.797 0.712 0.635 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 0.093 14% 16% 18% 20% 22% 24% 26% 28% 30% 32% 0.877 0862 OM 0.833 01220 0.806 0.794 0.7810.769 0.758 0.769 0.743 0.718 0.694 0.672 0.650 0.630 0.610 0.592 0.574 0.5750.841 0.6090 5790.551 0.524 0.500 0.4770455 0435 0.592 0.552 0516 0482 0451 0.423 0.397 0.3730 .350 0.329 0.519 0.4760437 0.402 0.370 0.341 0.315 0.291 0.269 0.250 0.456 02410 0370 02 03030275 0.250 0.227 0207 0.18 0.400 0354 0314 02790 249 0.222 0.19 0.178 0.159 0.143 0.351 0.305 0.206 0.233 0.204 0.179 0.157 0.139 0 .123 .108 0.308 0.263 0225 0.194 0.167 0 144 0.125 0.10800940082 02700 227 0.191 0.162 0.137 0.116 0.099 0.005 0.073 0.062 0.237 0.195 0.162 0.135 0.112 0.094 0.079 0.066 0.056 0.047 0.2080.168 0.1370 112 0092 0078 0.052 0.0520.043 0.038 0.182 0.145 0.116 0.093 0.075 0.061 0.050 0.040 0.033 0.027 0.160 0.125 0.099 0.078 0.062 0.049 0.039 0.032 0.025 0.021 0.140 0.10B 0.084 0065 0.051 0.0400 031 0.025 0.0200 016 0.1230093 0.071 0054 0.042 0.032 0.025 0.0190 015 0.012 0.08 0.000 0.000 0.045 0.034 0.025 0.020 0.015 0.012 0.009 0.095 0.009 0.051 0.038 0.028 0.021 0.018 0012 0.009 0.007 0.083 0.05 0.043 0.031 0.023 0.017 0.0120 009 0.007 0.005 0.073 0.051 0.037 0.026 0.019 0.014 0.010 0.007 0.005 0.004 0.014 0.044 0.031 0.022 0.015 0.011 0.008 0.008 0004 0.003 40% 0714 0.510 0364 0.250 0.186 0.133 0.095 0.068 0.048 0.035 0.025 0.018 0.013 0.009 0.008 0.005 0.003 0.002 0.002 0.001 0.001 15 16 18 21 Print 1 Reference Periods 5 6 Present Value of Annuity $1.00 in Arrears" Periods 2% 4% 6% 8% 1 0 .9800.902 0.943 0.926 1.942 1.8.8.8 1.833 1.783 3 234 2.775 2673 2577 3.808 3.630 3.465 3.312 5 4.713 4.452 4212 3.993 5.601 52424.917 4.623 6.472 6,002 5.5825.206 73256733 6.210 5.747 8.162 7435 6.802 6 247 8.933 8.111 7.350 6.710 9.787 3.780 7887 7.139 10 575 0.3858.384 7.536 11.343 086 8.853 704 14 12.106 10.563 0206 8.244 12 340 11.118 9.712 8.550 16 13.578 11.652 10.106 8,851 14 292 12.106 10.477 0.122 18 14.992 12.650 10 828 9 372 15 678 13.134 11.158 9.604 16.351 13.50 11.4709818 21 17 011 14020 11.764 10.017 7 8 9 10% 12% 14% 16% 18% 20% 22% 24% 26% 0.909 0.893 0.877 0.8820 847 0.833 0.820 0.8060.794 1.736 1.090 1.647 1.6051 566 1.528 1.492 1.457 1.424 2487 2.402 2322 2246 2.174 2.106 2042 1981 1923 3.170 3.037 2.914 2.798 2.690 2 589 2494 2.404 2320 3.791 3.6053 433 3.274 3.127 2.991 2.864 2.745 2635 4.355 4.111 3.889 3.685 3498 3.326 3.167 3.0202885 4.868 4.564 4288 4.039 3.812 3.605 3416 3.2423083 5.335 4.00 4.6394344 4.078 3837 3.619 3.421 3.241 5.759 5.328 4.946 4.00 4.303 40313.786 3.566 3.366 6.145 5.6505 218 4.833 4.494 41023.923 3.682 3 465 5.495 5.93B 5.453 5.029 4.656 4.327 4.035 3.776 3.543 6.814 6.194 5.660 5.197 4.793 4.4394.127 3.851 3.606 7.103 5.4245.342 5.342 4.910 453 4.203 3.912 3.656 7367 0.628 6.002 5.468 5.00 4611 4 205 3962 3.695 7,506 6.811 6.142 5.575 5.092 4.675 4315 4.001 3.723 7.824 6.974 6.205 5.668 5.162 4.730 4357 4033 3.751 3.022 7.120 6.373 5.749 5222 4.7754 301 4.050 3.771 8.2017.250 6.467 5.818 52734.812 4 419 4 080 3.786 8.365 7.306 6.550 5.8775316 4.843 4.4424.097 3.799 8514 7.489 6.623 5.929 5.353 4.870 4.450 4.110 3.808 8.849 7.562 6687 5.973 5.384 4.891 4.478 4.121 3816 28% 30% 32% 40% 0.781 0.769 0.7580.714 1.392 1361 1.331 1 224 1.8681818 1.766 1.589 2241 2.166 2.096 1.849 2532 2436 2 345 2.035 2759 2643 2534 2.168 2937 2802 2677 2.253 3.078 2.925 2.780 2.331 3.184 3.0192 8682379 3.269 3.092 2.930 2414 3335 3.147 2 978 2438 3.387 3.190 3.0132 458 3.427 3223 3040 2.489 3.459 3.249 3.051 2478 3 483 3.200 3.078 2.414 3.503 3 283 3 088 2489 3.518 3.295 3.097 2.492 3.5293.304 3 104 2494 35393 311 3.109 2.496 3.546 3 318 3.113 2.497 3 551 3.320 31162 493 10 11 12 14 15 18 19 20 21 Print Done Reference 30% 1300 100 2.197 2858 3.713 Compound Amount of $1.00 (The Future Value of $1.00) Periods 25 4 % 6% 8% 10% 12% 14% 10% 10% 20% 22% 24% 1020 1040 1080 1080 1.100 1.120 1.140 1.160 1180 1200 1220 240 2 1040 1021124 1185 1210 1254 1300 1946 192 140 1431538 3 1051 1125 1191 120 1331 1405 1482 151 103 1728 1816 1907 10B2 1.170 1202 1.350 1.464 1.574 1689 1811 1,939 2074 2215 2364 5 1.104 217 1338 1489 1 611 1.762 1.925 2.100 2288 2488 2.703 2932 8 1125 125 1419 1587 1772 1.9742.195 2416 2700 2008 3297 3635 7 1 316 104 714 10 2211 252 253 3583 4023 6508 1.172 10150485121442476 2.853 3278 379 4300 4 908 5.590 1.195 1423 1680 1.999 2.358 27733252 3303 4.435 5.160 5 987 6.931 1219 140 1791 2.150 2504 3.100 3707 4411 521 192 7 305 8.594 11 1243 15 18 2332 213 3479 2285117 118 740891210657 12 1208 1801 2012 2010 3.130 3.000 4818 6036 7.200 1.910 10 872 18215 124 1005 2.133 2.720 3.452 4.303 5.492 5.886 8599 10.090 13 204 16.30 14 1319 1732 2 201 2.937 3.787 4887 6261708 10.147 12.. 18.182 20 319 1340 100 2.307 3.172 4.177 6.474 7138 0.200 1107415407 10 742 25.190 137 AT 2500 3.420 4.50 6.130 & 137 10 748 14 120 18.488 24.000 31.243 17 1400 10 2 3 3700 5054 276 12 468 16.672 22 16 20 34 38 741 1428 2026 28543 906 5 500 7.500 10.575 14 463 9.673 26.623 354 48039 1.457 2107 3.020 4316 6.116 3.613 12.056 16.777 23 214 31.0 43.736 30 568 20 1480 2.101 3.207 4.601 6.727 9.540 13.743 10.401 27.300 29.300 63.350 73.864 21 516 2 213 3400 5034 700 030415 88 22 574246505 505 1 2 26% 28% 20 1280 1639 2.000 2.097 2.520 2684 3178 3436 4002 4398 5002 5.629 6.353 7205 8005 9223 10086 11 806 2015112 10.012 19 13 20.175 24759 25.421 31.691 32000 40.505 40350 51923 50 851 00.461 4.072 05.071 30.731 08 800 101.721 130 300 2 7840 5275 8.157 10 504 13 78 17.022 23 298 30.283 30 511 2 0.504 112 455 48192 100 oso 27 05 32% 40% 1320 1400 1702 1.950 2 300 2744 3.03.5 3842 4.007 5290 7530 503 10 541 9.217 14758 12 186 20.061 18.00 2925 21.199 4040 27983 04 36 037 70 371 4757 111.120 6430 1555 2175 112.133 304013 148 024 428.879 195 391 S970 257016 383 4069117118 Print Done 1000 30% 1.000 2.300 3.990 32% 1000 2120 mpound Amount of Annuity of $1.00 in Arras (Future Value of Annuity) riods 2% 4% % % 10% 12% 14% 16% 18% 22% 20% 24% 1 1 .000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2020 2040 200 200 2.100 2.120 2.140 2.160 2180 2 200 2220 22.00 3 3.000 3.122 3.104 3240 3.310 3.374 3.440 3.505 3.572 3708 3778 4 122 423 4375 4505 4641 47794921 50 5215 5358 5524 55 5 52045415 5537 5.357 5.105 353 6.61058777154742 77408048 5 085633 5 975 7335 7716 115 8536 397794429930 1042 10 000 7 7434 7 398 394 9 23 9.487 10.08910.730 11.414 12 142 12916 2013740 14 615 3 583 9 214 9897 10.637 11.436 12300 13233 14.240 15.327 15.400 17.752 19. 123 9755 10.583 11.49112 468 13.579 14.778 16.085 17 519 19.085 20.799 22 670 24.712 10 10.050 12 006 13 151 14 487 15.937 17.540 19337 21 21 23 521 25 950 28657 31 843 1 12 100 13.400 14072 10. BAS 18.531 20.000 23.045 26.739 28. 756 32.150 35.982 4022 12341215025 BOBOT7 21 24 13 27 27 303 931 395 7 4 S01395 1 14.000 1082T 10.00 21.405 24.523 20.020 32.000 38.788 42219 48 497 55 746 54 110 5 18 292 2101524215 27 975 23 37 51 52 818 590 0010 0495 15 17 23 20 02423 7 27 152 31.772 37 230 43142516000065 72095 5.192 100 815 10 10650 21.825 20 30 324 35.050 42 760 50 980 60 020 72000 87 442 104.035 126.01 17 20 012 230 28 213 337040.545 48 50 118 71 673 87 068 105.931 129020 157 253 18 21 412 25.645 30 60 37 40 45.500 5.750 68 304 4.141 103.740 128 117 158 405 195 904 10 22 11 27 571 0 41 446 51 150 3440 00 800 123 414 154.760 04254 244033 20 24 207 20778 45782 57 27572 052 01 025 115 380 46.62813 2 370 303.801 21 20.700 31000 30000 60423 66.002 01000 104.760 134.841 174.021 225.020 201 347 377 405 26% 28% 1.000 1.000 2260 2.280 3848 3918 5848 6015 8358 8700 11544 12 135 15 546 18.534 20.588 22.163 28 940 2919 14 15 38 593 450310398 57719 65 510 73751 53 03 92 109 612 1197 161 303 151.377 101.000 101.735 233.791 242 55 300252 08858 385 323 7 0 4213 400 110 633.500 91043 12.756 17 583 23 858 32 015 42819 50.405 747 13400 18.096 25.678 34.895 47062 63 122 127 913 16728 218472 205.014 371 518 3973 0165 820215 11213 149240 197 097 252350 347 309 459 449 807 472 302 303 1080 T79 750 104 200 un ulu Uusiness. The information Heaven Future Value of $1 table Future Value of Annuity of $1 table Data Table Cost of the machine Increased contribution margin Life of the machine Required rate of return $160,000 $24,000 9 years 6% Heavenly 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 year-end except for initial investment amounts. Print Done
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
