Splendid Candy Company is considering purchasing a second chocolate dipping machine in order to expand their business. The information Splendid has accumulated regarding the new machine is: B (Click 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 Annuity of $1 table Read the fequirements Data Table Cost of the machine $90,000 $20,000 Increased contribution margin Life of the machine Required rate of return 9 years 6% Splendid 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. Requirements Calculate the following for the new machine: Net present value b. Payback period Discounted payback period d. Internal rate of return (using the interpolation method) Accrual accounting rate of return based on net initial investment (assume straight-line depreciation) What other factors should Splendid Candy consider in deciding whether to purchase the new machine? 2