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Bonita Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eight

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Bonita Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eight years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $37,000. Management also believes that the new machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime. Assume a discount rate of 10%. Click here to view the factor table: Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg - 45 or porentheses eg. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, es. 1.25124. Round present value answer to 0 decimal places, e.g. 1,250.) Net present value How much would the reduction in downtime have to be worth in order for the project to be acceptable

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