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Sandhill Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $185,500 and has an estimated useful life of 8

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Sandhill Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $185,500 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 $30,300. 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 8%. Click here to view the factor: table: Calculate the net present value. If the net present value is negative, use either a negative sign preceding the number es -45 or parentheses es (45). For calculation purposes, use 5 decimal ploces as disployed in the foctor table provided. Round present value answer to 0 decimal places, es. 125.) Net present value 5 How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, es. 125)

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