The Sweetwater Candy Company would like to buy a new machine for $$260,000$ that automatically "dips" chocolates. The manufacturer estimates the machine would be usable for five years but would require replacement of several key parts costing $$10,700$ at the end of the third year. After five years, the machine could be sold for $$10,000.$

The company estimates the cost to operate the machine will be $$8,700$ per year. The present labor$-$intensive method of dipping chocolates costs $$47,000$ per year. In addition to reducing costs, the new machine will increase production by $9,000$ boxes of chocolates per year. The company realizes a contribution margin of $$1\mathrm{.}70$ per box. A $16\%$ 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.