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Mighty Vita produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the company

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Mighty Vita produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the company is considering the purchase of a new packaging machine to replace the seven-year- old machine currently in use. The new machine will cost $160,000, and installation will require an additional $15,000. The machine has a useful life of 10 years and is expected to have a salvage value of $8,000 at that time. The variable cost to operate the new machine is $10.00 per carton compared to the current machine's variable cost of $10.10 per carton, and Mighty Vita expects to pack 250,000 cartons each year. If the new machine is purchased, Mighty Vita will avoid a required $10,000 overhaul of the current machine in four years. The current machine has a market value of $14,000. Identify the amount and timing of all cash flows related to the acquisition of the new packaging machine(Enter negative amounts using a negative sign preceding the number eg.-45 or parentheses eg. (45).) Timing Amount Cash Flow Purchase price Salvage of old equipment Salvage of new equipment Variable cost savings Avoided overhaul

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