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Doughboy Bakery would like to buy a new machine for putting icing and other toppings on pastries. These are now put on by hand. The

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Doughboy Bakery would like to buy a new machine for putting icing and other toppings on pastries. These are now put on by hand. The machine that the bakery is considering costs $91,000 new. It would last the bakery for eight years but would require a $7,500 overhaul at the end of the third year. After eight years, the machine could be sold for $6,000 he bakery estimates that it will cost $10,500 per year to operate the new machine. The present manual method of putting toppings on the pastries costs $30,000 per year. In addition to reducing operating costs the new machine will allow the bakery to increase its production of pastries by 5,000 packages per year The bakery realizes a contribution margin of S0.60 per package. The bakery requires a 6% return on all investments in equipment. (lgnore income taxes.) Click here to view Exhibit 11B.1 and Exhibit 113-2, to determine the appropriate discount factor(s) using tables Required: 1. What are the annual net cash inflows that will be provided by the new machine? Annual net cash inflows 2. Compute the new machine's net present value. Use the incremental cost approach. (Negative amount ount factor(s) to 3 decimal places, other should be indicated by a minus sign. Round disc intermediate calculations and final answer to the nearest whole dollar.) Net present value

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