Swifty, Inc. is considering the purchase of a new machine for $460000 that has an estimated useful life of 5 years and no salvage value. The machine will generate net annual cash flows of $80500. It is believed that the new machine will reduce downtime because of its reliability. Assume the discount rate is 8%. In order to make the project acceptable, the increase in cash flows per year resulting from reduced downtime must be at least

Year	Present Value of 1 at 8%	PV of an Annuity of 1 at 8%
1	.926	.926
2	.857	1.783
3	.794	2.577
4	.735	3.312
5	.681	3.993

$34477 per year.

$34701 per year.

$14065 per year.

$17529 per year.