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Sunland Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eight

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Sunland Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 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 $36.000. 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 redoce downtime. Assume a discount rate of 10% 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 e. (45). For calculation purposes, use 5 decimal ploces as displayed in the factor table provided, e. 1.25124. Round present value answer fo 0 decimal ploces, eg. 1.250. 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 5 eTextbook and Media

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