Pina Colada 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-yearold machine currently in use. The new machine will cost $165,050, and installation will require an additional $3,050. The machine has a useful life of 10 years and is expected to have a salvage value of $4,045 at that time. The variable cost to operate the new machine is $10.45 per carton compared to the current machine's variable cost of $10.55 per carton, and Pina Colada Vita expects to pack 248,000 cartons each year. If the new machine is purchased, Pina Colada Vita will avoid a required $10,425 overhaul of the current machine in four years. The current machine has a market value of $12,475. Click here to view the factor table. (a) Calculate the net present value of the new packaging machine. Assume that Pina Colada Vita uses an 9% discount rate. (For colculation purposes, use 4 decimal ploces as displayed in the factor table provided and round final answer to 2 decimal places, eg. 58.971 .75 . Enter negative amount using a negative sign preceding the number, es. -59,991 or parentheses eg. (59,991).) Net present value (b) Do you recommend that Pina Colada Vita purchase the new machine? (c) Assume that Pina Colada Vita has adopted a new 12% discount rate. Calculate the net present value of the new packaging machine. (For calculation purposes, use 4 decimal places as disployed in the foctor table provided and round final answer to 2 decimal places, eg. 58,971.75. Enter negative amount using a negotive sign preceding the number. es. -59,991 or parentheses eg. (59.991).) Net present value