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- A G H B C D E F Capital Decision Making Big Al gives his worker's a one hour lunch and two fifteen minute breaks each day. He believes that a 3 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 $1,950. The machine should be usable for 6 years, after which it would be inefficient, obsolete and would have to be disposed of at the 1 dump. Big Al believes that 8 cans a day will be purchased. The plant is open five days a week, 50 2 weeks per year. A case of soda (24 cans) costs $6.24 and Big Al believes that a price of $.90 per 7 can would win him good will. 9 What is the estimated annual sales in cans of soda? {17.01} What is the contribution margin per can of soda? (rounded to five places. So {17.02 47 How many cans of soda must be sold each year to breakeven? (Round up to zero places. ### ### cans) 54 17.03? ... 6 7 8 9 10 11 12 13 14 15 16 17 18 Present Value Tables READY 18 Type here to search o e GP SM2594 [Compatibility Mode] - Ex FORMULAS DATA REVIEW VIEW 15. HOME INSERT PAGE LAYOUT * Cut MS Sans Serif -8.5 e Copy BIU - E. * Format Painter Clipboard Font General Op Wrap Text Es Merge & Center - Alignment s 8 $ - % Number : I B C D E F G H Annual incremental cash inflows from the soda machine? (rounded to two places, $#.#) {17.04) What is the payback period in years? (rounded to two places, #.## 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 14 15 16 17 18 Present Value Tables AD

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