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The Sweetwater Candy Company would like to buy a new machine that would automatically dip chocolates The dipping operation is currently done largely by hand.

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The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates The dipping operation is currently done largely by hand. The machine the company is considenng costs S160.000. The manufacturer estimates that the machine would be usable lor five years but would require the replacement of several key parts at the end of the third year. These parts would cost $9,700. including installation. After five years, the machine could be sold for $3,500. The company estimates that the cost to operate the machine will be $7,700 per year The present method of dipping chocolates costs S37.000 per year. In addition to reducing costs, the new machine wd increase production by 4.000 boxes of chocolates per year The company realizes a contribution margin of $1.20 per box. A 12% rate of return is required on all investments. What are the annual net cash inflows that w* be provided by the new dipping machine

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