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 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 parentheses eg

$(45).$ For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Round present value answer to $0$ decimal places,

e$.$g$.125.)$

Net present value $

How much would the reduction in downtime have to be worth in order for the project to be acceptable? $($Round answer to $0$ decimal

places, e$.$g$.125.)$

$

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