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Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $184,800 and has an estimated useful life of years
Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $184,800 and has an estimated useful life of years with zero salvage value Management estimates that the new bottling machine will provide net annual cash flows of $33,600. Management also believes that the new betting 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 115 Click here to view table Calculate the net present value. (If the net present value is negative, weither a negative in preceding the number purposes, use 3 decimal places as displayed in the factor table provided. Round present value answer to decimal place w ho (49). For calculation 12 Net present values How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Hound answer to comple 1 23 Click Il you would like to show Work for this questioni Open Show Work
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