I need to re-present question #2 with the specific elements.Please look beneath the table for specifics... Donut Shop isinvestigating the purchase of a new $40,000 donut-making machine.The new machine would permit the company to reduce the amount ofpart-time help needed, at a cost savings of $5,200 per year. Inaddition, the new machine would allow the company to produce onenew style of donut, resulting in the sale of 2,000 dozen moredonuts each year. The company realizes a contribution margin of$2.40 per dozen donuts sold. The new machine would have a six-yearuseful life.
Find the internal rate of return promised by the new machine tothe nearest whole percent.
Internal rate of return:
Choose Numerator: / Choose Denominator: = Factor Number of Years Internal Rate of Return ACI/ACO/IR (below)? / ACI/ACO/IR (below)? = #? / #? = #? %?
Numerator and Denominator options for the first line:
Annual Cash Inflow?
Annual Cash Outflow?
Investment required?
The 2nd line asking for Numerator and Denominator require theinput of numbers
I need to re-present question #2 with the specific elements.Please look beneath the table for specifics... Donut Shop isinvestigating the purchase of a new $40,000 donut-making machine.The new machine would permit the company to reduce the amount ofpart-time help needed, at a cost savings of $5,200 per year. Inaddition, the new machine would allow the company to produce onenew style of donut, resulting in the sale of 2,000 dozen moredonuts each year. The company realizes a contribution margin of$2.40 per dozen donuts sold. The new machine would have a six-yearuseful life.
| Find the internal rate of return promised by the new machine tothe nearest whole percent. Internal rate of return: | ||||||||||||||||||||||
Numerator and Denominator options for the first line: Annual Cash Inflow? Annual Cash Outflow? Investment required? The 2nd line asking for Numerator and Denominator require theinput of numbers |
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PLEASE DON'T CONTINUE TO ANSWER AQUESTION I AM NOT ASKING AS YOUR GUIDANCE IS GIVING ME THE WRONGANSWER... please advise... per the table... what goes inthe first line under numerator? What goes in the 2nd line undernumerator? What goes in the first line under denominator? What goesin the 2nd line under denominator? What goes in "number of years"on the 2nd line? What goes in IRR on the 2nd line?
A Donut Shop is investigating the purchase of a new $40,000donut-making machine. The new machine would permit the company toreduce the amount of part-time help needed, at a cost savings of$5,200 per year. In addition, the new machine would allow thecompany to produce one new style of donut, resulting in the sale of2,000 dozen more donuts each year. The company realizes acontribution margin of $2.40 per dozen donuts sold. The new machinewould have a six-year useful life.
| Choose Numerator: | / | Choose Denominator: | = | Factor | Number of Yrs | Internal R.R. |
| ACI/ACO/IR (below)? | / | ACI/ACO/IR (below)? | = | |||
| #? | / | #? | = | #? | %? |
Numerator and Denominator options for the first line:
Annual Cash Inflow?
Annual Cash Outflow?
Investment required?
The 2nd line asking for Numerator and Denominator, Number ofYears and Internal Rate of Return require the input of numbers.
The previous answers did not address this question as it's posedand are resulting in errors on my end.
Thank you.
Wendellâs Donut Shoppe is investigating the purchase of a new$50,100 donut-making machine. The new machine would permit thecompany to reduce the amount of part-time help needed, at a costsavings of $5,900 per year. In addition, the new machine wouldallow the company to produce one new style of donut, resulting inthe sale of 2,600 dozen more donuts each year. The company realizesa contribution margin of $1.60 per dozen donuts sold. The newmachine would have a six-year useful life. |
Required: | |||||||||||||
What would be the total annual cash inflows associated with thenew machine for capital budgeting purposes? | |||||||||||||
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2. | Find the internal rate of return promised by the new machine tothe nearest whole percent. | ||||||||||||||||||||||||||||||||||||
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In addition to the data given previously, assume that themachine will have a $19,000 salvage value at the end of six years.Under these conditions, compute the internal rate of return to thenearest whole percent. (Round your final answer to nearestwhole percentage.) | ||||||||
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Wendellâs Donut Shoppe is investigating the purchase of a new$40,000 donut-making machine. The new machine would permit thecompany to reduce the amount of part-time help needed, at a costsavings of $5,200 per year. In addition, the new machine wouldallow the company to produce one new style of donut, resulting inthe sale of 2,000 dozen more donuts each year. The company realizesa contribution margin of $2.40 per dozen donuts sold. The newmachine would have a six-year useful life.
| 1. | What would be the total annual cash inflows associated with thenew machine for capital budgeting purposes? Annual Savings in Part time Help: Added Contribution Margin from expanded sales: Annual cash inflows:
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