Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $$200,000$ and has an estimated useful life of $8$ years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $$34,000.$ Management also believes that the new bottling 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 $9\%.$ Click here to view PV table.

Calculate the net present value. $(1$f the net present value is neggatlve, use elther a negative sifon preceding the number eg $-45$ or parentheses es $(45).$ For calcolation purposes, use $5$ decimal places as dlsplayed in the factor table prowlded. Round present value answer to $0$ decimal places eg $125)$

Net present value

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How much would the reduction in downtime have to be worth in order for the project to be acceptable? $($Aound answer to $0$ decimal places, eg$.125.)$

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