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Whispering Winds Vita produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the

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Whispering Winds Vita produces a wide range of herbal supplements sold nationwide through independent distributors. In response to an increasing demand for its products, the company is considering the purchase of a new packaging machine to replace the seven-year-old machine currently in use. The new machine will cost $172,550, and installation will require an additional $3,200. The machine has a useful life of 10 years and is expected to have a salvage value of $3,835 at that time. The variable cost to operate the new machine is $11.35 per carton compared to the current machine's variable cost of $11.42 per carton, and Whispering Winds Vita expects to pack 255,000 cartons each year. If the new machine is purchased, Whispering Winds Vita will avoid a required $11,175 overhaul of the current machine in four years. The current machine has a market value of $12,925. Identify the amount and timing of all cash flows related to the acquisition of the new packaging machine. (Enter negative amounts using a negative sign preceding the number e.g. -45 or parent. 146 Whispering Winds Vita will avoid a required $11,175 overhaul of the current machine in four years. The current machine has a market value of $12,925. Identify the amount and timing of all cash flows related to the acquisition of the new packaging machine. (Enter negative amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Cash Flow Timing Purchase price Installation Salvage of old equipment Salvage of new equipment Variable cost savings Avoided overhaul

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