E21-25 (similar to) Question Help Burlington Cola is considering the purchase of a special-purpose bottling...

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E21-25 (similar to) Question Help Burlington Cola is considering the purchase of a special-purpose bottling machine for $80,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs (Click the icon to view the savings in cash operating costs.) Burlington Cola uses a required rate of return o 14% n its capital budgeting decisions. gnore income taxes in your anaysis. Assume all cash flows occur at year-end except or initia nvestment amounts (Click the icon to view the Future Value of $1 factors.) (Click the icon to view the Future Value of Annuity of $1 factors.) (Click the icon to view the Present Value of $1 factors.) Read the requirements 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is $ (Click the icon to view the Present Value of Annuity of $1 factors.) - X Data Table Requirements Calculate the following for the special purpose bottling machine 1. Net present value 2. Payback period 3. Discounted payback period 4. Internal rate of return (using the interpolation method) 5. Accrual accounting rate of return based on net initial investment (Assume Year Amount $ 35,000 30,000 20,000 12,000 $ 97,000 straight-line depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return Total Print Done Print Done

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