Kingbird, Inc. is considering the purchase of a new machine for $650000 that has an estimated useful life of 5 years and no salvage value. The machine will generate net annual cash flows of $113750. It is believed that the new machine will reduce downtime because of its reliability. Assume the discount rate is 8%. In order to make the project acceptable, the increase in cash flows per year resulting from reduced downtime must be at least Year Present Value of 1 at 8% PV of an Annuity of 1 at 8% 1 .926 .926 2 .857 1.783 3 .794 2.577 4 .735 3.312 5 .681 3.993 $48718 per year. $49035 per year. $24770 per year. $19874 per year.