Need d ### TopCap Co. Sewing Machine Investment Evaluation**Overview:**TopCap Co. is evaluating the purchase of a new sewing machine that will be used to manufacture sport caps. The invoice price of the machine is $122,000. In addition, delivery and installation costs will total $5,500. The machine has the capacity to produce 12,000 dozen caps per year. Sales are forecasted to increase gradually, and production volumes for each of the five years of the machine’s life are expected to be as follows:| Year | Production Volume (dozen caps) ||------|-------------------------------|| 2019 | 3,600 dozen || 2020 | 5,600 dozen || 2021 | 8,500 dozen || 2022 | 11,300 dozen || 2023 | 12,000 dozen |The caps have a contribution margin of $10.00 per dozen. Fixed costs associated with the additional production (other than depreciation expense) will be negligible. Salvage value and the investment in working capital should be ignored. TopCap Co.'s cost of capital for this capacity expansion has been set at 10%.### Requirements:#### Part 1:- **Contribution Margin:** $10.00 per dozen- **Cost of Capital:** 10%Required:1. **Calculate the net present value of the proposed investment in the new sewing machine.**2. **Calculate the present value ratio of the investment.**3. **What is the internal rate of return of this investment relative to the cost of capital?**4. **Calculate the payback period of the investment.**#### Part 2:- **Contribution Margin:** $5.00 per dozen- **Cost of Capital:** 16%Required:1. **Calculate the net present value of the proposed investment in the new sewing machine.**2. **Calculate the present value ratio of the investment.**3. **What is the internal rate of return of this investment relative to the cost of capital?**4. **Calculate the payback period of the investment.**### Graphs and Diagrams:There is a table provided showing the projected production volumes over the five-year life of the machine:| Year | Production Volume (dozen caps) ||------|-------------------------------|| 2019 | 3,600 dozen || 2020 | 5 ### Factors for Calculating the Present Value of $1#### Table 6.4This table illustrates the factors for calculating the present value of $1 under various discount rates and periods. This can be a vital resource for students and professionals involved in finance and accounting as it helps to determine the present value of future cash flows.#### Table Key- **No. of Periods:** The number of time periods (e.g., years).- **Discount Rate:** The interest rate applicable for discounting future cash flows.The table is structured as follows:| No. of Periods | 2% | 4% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% ||----------------|-------|-------|-------|-------|--------|--------|--------|--------|--------|--------|| 1 | 0.980 | 0.9615| 0.9434| 0.9259| 0.9091 | 0.8929 | 0.8772 | 0.8621 | 0.8475 | 0.8333 || 2 | 0.961 | 0.9246| 0.8900| 0.8573| 0.8264 | 0.7972 | 0.7695 | 0.7432 | 0.7182 | 0.6944 || 3 | 0.942 | 0.8890| 0.8396| 0.7938| 0.7513 | 0.7118 | 0.6750 | 0.6407 | 0.6086 | 0.5787 || ... | ... | ... | ... | ... | ... | ... | ... | ... | ... | ... || 50 | 0.372 | 0.1407| 0.0543| 0.0213| 0.0085 | 0.0035 | 0.0014 | 0.0006 | 0.0002 | 0.0001 |Please note that the above partial representation continues up to 50 periods.Each cell within

The question is based on the concept of Cost Accounting.

TopCap Co. is evaluating the purchase of another sewing machine that will be used to manufacture sport caps. The invoice price of th machine is $122,000. In addition, delivery and installation costs will total $5,500. The machine has the capacity to produce 12,000 dozen caps per year. Sales are forecast to increase gradually, and production volumes for each of the five years of the machine's life are expected to be as follows: Use Table 6-4. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) 3,600 dozen 5,600 dozen 8,500 dozen 11,300 dozen 12,000 dozen 2019 2020 2021 2022 2023 The caps have a contribution margin of $10.00 per dozen. Fixed costs associated with the additional production (other tha