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Need quick answer please Brief Exercise 12-4 Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $211,732 and

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Brief Exercise 12-4 Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $211,732 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $39,900. Management also believes that the new bottling 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 11%. (Refer the below table) TABLE 3 Present Value of 1 Periods 4% 5% 7% 8% 9% 10% 119 12% 15% 96154 95238 94340 0.93458 92593 91743 9090990090 89286 86957 92456 90703 89000 0.8734485734 84168 82645 81162 .79719 .75614 88900 86384 83962 0.81630 79383 77218 75132 73119 71178 65752 85480 82270 79209 0.76290 73503 70843 68301 65873 63552 57175 82 193 .78353 .74726 0.71299 .68058 .64993 .62092 .59345 .56743 .49718 79031 74622 70496 0.66 75992 71068 66506 0.62275 58349 54703 51316 48166 45235 37594 .73069 .67684 .62741 0.58201 .54027 .50187 .46651 .43393 .40388 .32690 634 6301759627 56447 .53464 .50663 43233 9 10 12 13 14 15 16 17 18 19 20 0259 64461 59190 0.54393 50025 46043 42410 39092 3606 28426 67556 61391 55839 0.50835 46319 4224 38554 35218 32197 24719 64958 58468 .52679 0.47509 42888 38753 35049 31728 28748 .21494 62460 .55684 49697 0.44401 397 35554 31863 28584 25668 18691 .60057 53032 46884 0.41496 36770 32618 28966 2575 22917 6253 14133 55526 48102 41727 0.36245 31524 27454 .23939 .20900 18270 12289 5339 458 39365 0.33873 29189 25187 21763 18829 16312 10687 5133743630 37136 0. .23107 19785 16963 .14564 09293 .49363 .41552 .35034 0.29586 .25025 .21199 .17986 .15282 .13004 .08081 4746439573 3305 0.27615 23171 19449 1635 13768 11611 07027 45639 37689 31180 0.25842 21455 17843 14864 12403 1036706110 57748 50507 4 44230 0.38782 34046 29925 26333 23199 20462 43630 37136 0.31657 27027

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