1. Burger Botanicals produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the company is considering the purchase of a new packaging machine to replace the seven-year-old machine currently in use. The new machine will cost $148,800, and installation will require an additional $2,700. The machine has a useful life of 10 years and is expected to have a salvage value of $4,500 at that time. The variable cost to operate the new machine is $8.50 per carton compared to the current machine