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Kinghird Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eifht

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Kinghird Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eifht vears with zero salvage value. Management estimates that the new botting machine will provide net arnual cash flows of $39,500. Management atso believes that the new machine will save the company monev becauseit is expected to be more reliable than other machines, and thas will reduce downtime. Assume a discoint rate of 12%. Clickliere to view the factor twhile. Calculate the net present value. If the net present value is negative, use either a negative sign preceding the number es. 45 ar parentheses es. (45). For colculation purposes, wse 5 decimal ploces as displayed in the factor table provided, eg. 125124 . Round present valive answer to 0 decimal ploces, ez, 1,250.) How much would the reduction in downtime have to be worth in order for the project to be acceptable

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