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Sunland Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $ 2 0 0 , 0 0 0 and
Sunland Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $ and has an estimated useful life of eight years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $ Management also believes that the new 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 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 eg or parentheses eg For calculation purposes, use decimal places as displayed in the factor table provided, egRound present value answer to decimal places, egNet present value$How much would the reduction in downtime have to be worth in order for the project to be acceptable?Present value of reduction in downtime$
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