Wonka Candy Inc. 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 costs $$100,000.$ The manufacturer estimates that the machine would be usable for $12$ years, but, at the end of the sixth year, would require the replacement of several key parts that would cost $$10,000,$ including installation. After $12$ years, the machine could be sold for about $$7,500.$

The company estimates that the cost to operate the machine will be only $$10,000$ per year. The presentimethod of dipping chocolates costs $$31,000$ per year. In addition to reducing costs, the new machine will increase production by $6,000$ boxes of chocolates per year. The company realizes a contribution margin of $$1\mathrm{.}50$ per box. A $20\%$ rate of return is required on all investments.

Required:

What are the net annual cash inflows that will be provided by the new dipping machine?

Compute the new machine's net present value. Use the incremental cost approach, and round all dollar amounts to the nearest whole dollar.