P 1. 1. Total cost to buy: $1,350,000

P 2. Contribution margin: $7,725

P 3. 3. Operating income from further processing, bagel sandwiches: $.50

P 4. 2. Net present value: ($5,430)

P 5. 1. Average annual net income, Cal Machine: $34,965; Average annual net income, Hawk Machine: $40,670

P 6. 1. Total cost to make: $3,084,000

P 7. 1. Net present value: $16,573

P 8. 1. Exalt Machine: ($32,379)

2. Exalt Machine: 20.7%

3. Exalt Machine: 5.4 years