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Please help me solve this question. Here is the complete question. The Sweetwater Candy Company would like to buy a new machine that would automatically

Please help me solve this question. Here is the complete question.

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The Sweetwater Candy Company would like to buy a new machine that would automatically \"dip" chocolates. The dipping operation is currently done largely by hand. The machine the company is considering costs $170,000. The manufacturer estimates that the machine would be usable for ve years but would require the replacement of several key parts at the end of the third year. These parts would cost $10,900, including installation. After ve years, the machine could be sold for $6,000. The company estimates that the cost to operate the machine will be $8,900 per year. The present method of dipping chocolates costs $49,000 per year. In addition to reducing costs, the new machine will increase production by 5,000 boxes of chocolates per year. The company realizes a contribution margin of $1 .45 per box. A 18% rate of return is required on all investments. Use Excel or spreadsheet to solve. Round answers to the nearest dollar. Required: 1. What are the annual net cash inows that will be provided by the new dipping machine? Reduction in annual operating costs: Operating costs, present hand method Operating costs, new machine Annual savings in operating costs Increased annual contribution margin Tomi annual net cash inows 2. Compute the new machine's net present value. (Any cash outflows should be indicated by a minus sign. Round final answers to the nearest whole dollar amount.) Purchase of machine Annual net cash inows Replacement parts Salvage value of machine Total cash ows Net present value

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