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The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy...

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Accounting

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The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy machine. The machine will cost $24,000 and last 10 years. The machine is expected to have no salvage value at the end of its useful life. The owner projects that the new candy machine will generate $4,500 in after-tax savings each year during its life (including the depreciation tax shield) Use Appendix A for your reference (Use appropriate factor(a) from the tables provided.) Required: Compute the profitability Index on the proposed candy machine, assuming an after-tax hurdle rate of (a) 5 percent. (6) 8 percent, and ta 10 percent. (Round your final answers to 2 decimal places.) Answer is complete but not entirely correct. Profitability Index la) 6 percent 0303 (6) 6 percent 0.2003 10 percent 0.15

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