The Sweetwater Candy Company would like to buy a new machine for $$240,000$ that automatically $$dips$$ chocolates. The manufacturer estimates the machine would be usable for five years but would require replacement of several key parts costing $$11,600$ at the end of the third year. After five years, the machine could be sold for $$5,000.$

The company estimates the cost to operate the machine will be $$9,600$ per year. The present labor$-$intensive method of dipping chocolates costs $$56,000$ per year. In addition to reducing costs, the new machine will increase production by $3,000$ boxes of chocolates per year. The company realizes a contribution margin of $$1\mathrm{.}80$ per box. A $13\%$ rate of return is required on all investments.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

What are the annual net cash inflows provided by the new dipping machine?

Compute the new machine$$s net present value.