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 considering cost $160,000. The manufacturer estimates that 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 $37,000 per year. In addition to reducing costs, the new machine will 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. Compute the new machine's net present value