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Waterwiay Bottling Corporation is considering the purchase of a new botting machine. The machine would cost 5200000 and has af estimated usetul life of eghe

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Waterwiay Bottling Corporation is considering the purchase of a new botting machine. The machine would cost 5200000 and has af estimated usetul life of eghe rears with reto salvase valus. Manapernent estimates that the new botting machina will provide net antwat cach flows of \$37,500. Manygement aluo believes that the newmachine will save the compary money becaure it is exixcted to be more reliable than other machines. and thus will reduce downtime. Assome a discount rate of 1104 Click hiero to bew the factor tatile. Calculate the net present value. If the net present value is negathe iste either a negotive sim preceding the number egs 45 or parentheset eg. (45). For calculation purpoues, use 5 decimal places os displayed in the foctor table provided eg. 1.25124. Round present value ansive to 0 dechnal places es. 1,250.) Hove much would the reductioni in downtime fiwe to be worth in ceder for the projext to be acceptable? Waterway Bottling Corporation is conidering the purchuse of a new bettling machine. The machine would cost $200,000 and has an estimated useful life of eight wars with zero salvage value. Management estimates that the new bottling machine will provide net arneal cahtiflows of \$37,500. Marlagement also believes that the newmachine will swe the compary money because it is expected to be more reliable than other machineh and thus will reduce downtime, Assurne a discount rate of 11%. Click here to vicw the factor table. Calculate the net present value. If the net present value is nepotive, wise eicher a negutive sign precediny the number es - 45 or parentheser es. (45). For calculation purposex use 5 decimal ploces as disployed in the foctor table provided, es. 1.25124. Round preient volue aniwer to 0 decimal ploces es. 1,250.3 How much woukd the reduction in downtime have to be worth in order for the project to be acceptable

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