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Sweetwater is a boutique candy maker that produces only one specialty product: boxes of assorted chocolates that include a regional favorite using Colorado peaches for the filling. These chocolates have become favorites of locals and tourists. The Sweetwater Candy Company produces its chocoates at a small facility in Fort Collins Sweetwater sells each unit for $25 per box. (1 unit = 1 box of chocolates) You have been asked to get involved with the budget preparation for next year and to use the information to make decisions. The budget process is already underway, and the accounting team has worked with the sales and marketing team to develop the following sales budget for next year: Work through the worksheets in this Excel workbook to complete the required calculations and analyses. Provide explanations as instructed. While preparing its budget for the second quarter, as part of its expansion plan, the Sweetwater Candy Company is planning for a capital expenditure on new equipment in April. To determine how much that expenditure will be, you must evaluate the following two options. Option \#1: Keep old equipment and overhaul it. If the company keeps and overhauls its old equipment, it will be used for five more years and then discarded (no salvage value). For each requirement, please add your name in the SOLUTION row for requirements that you prepared the solution. Add your name in the REVIEW row for requirements that you reviewed. If you do not agree with the solution, leave comments for your teammate explaining how you would fix it. Do not add your name in the REVIEW cell until you agree with the solution. Option \#2: Buy new equipment and sell the old equipment. If new equipment is purchased now, it will be used for 10 years, after which it will be traded in at its salvage value for another new piece of equipment. The new equipment would cost less to operate resulting in an increase in expected annual cash flows, as shown below. The old equipment would be sold now at its salvage value. Management requires investments to have a payback period of 5 years, and it requires a 16% return on its investments. The company has assembled the following information: Required: (A.) Calculate the Payback Period, Net Present Value, and Internal Rate of Return for the two options. (B.) Which investment should the company choose? Explain

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