Whispering Winds Bottling Corporation is considering the purchase of a new bottling machine The machine would cost $ 1 6 0 , 0 0 0 and has an estimated useful life of eight years with zero salvage value Management estimates that the new bottling machine will provide net annual cash flows of $ 3 0 , 0 0 0 Management also believes that the new machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime Assume a discount rate of 1 1 Click here to view the factor table Calculate the net present value ( If the net present value is negative, use either a negative sign preceding the number e g 4 5 or parentheses e g ( 4 5 ) For calculation purposes, use 5 decimal places as displayed in the factor table provided, e g 1 2 5 1 2 4 Round present value answer to 0 decimal places, e g 1 , 2 5 0 ) Net present value $ How much would the reduction in downtime have to be worth in order for the project to be acceptable Present value of reduction in downtime $

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Whispering Winds Bottling Corporation is considering the purchase of a new bottling machine  The machine would cost $ 1 6 0 , 0 0 0 and has an estimated useful life of eight years with zero salvage value  Management estimates that the new bottling machine will provide net annual cash flows of $ 3 0 , 0 0 0   Management also believes that the new machine will save the company money because it is expected to be more reliable than other machines, and thus will reduce downtime  Assume a discount rate of 1 1     Click here to view the factor table  Calculate the net present value  ( If the net present value is negative, use either a negative sign preceding the number e   g     4 5 or parentheses e   g   ( 4 5 )   For calculation purposes, use 5 decimal places as displayed in the factor table provided, e   g   1   2 5 1 2 4   Round present value answer to 0 decimal places, e   g   1 , 2 5 0   ) Net present value $ How much would the reduction in downtime have to be worth in order for the project to be acceptable  Present value of reduction in downtime $

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Whispering Winds Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $ 1 6 0 , 0 0 0

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