Sarasota 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 $168,800, and installation will require an additional $3,125. The machine has a useful life of 10 years and is expected to have a salvage value of $3,940 at that time. The variable cost to operate the new machine is $10.90 per carton compared to the current machine's variable cost of $11.00 per carton, and Sarasota Vita expects to pack 252,000 cartons each year. If the new machine is purchased, Sarasota Vita will avoid a required $10,800 overhaul of the current machine in four years. The current machine has a market value of $12,700. Click here to view the factor table. (a) Calculate the net present value of the new packaging machine. Assume that Sarasota Vita uses an 8% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 2 decimal places, e.g. 58,971.75. Enter negative amount using a negative sign preceding the number, e.g.-59,991 or parentheses e.g. (59,991).) Net present value $ (b) Do you recommend that Sarasota Vita purchase the new machine? (c) Assume that Sarasota Vita has adopted a new 11% discount rate. Calculate the net present value of the new packaging machine. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 2 decimal places, e.g. 58,971.75. Enter negative amount using a negative sign preceding the number, e.g. -59,991 or parentheses e.g. (59,991).) Net present value $ Do you recommend that Sarasota Vita purchase the new machine? eTextbook and Media