Compute the new machine's net present value.

Note: Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.

Net present valueThe Sweetwater Candy Company would like to buy a new machine for $$160,000$ that automatically $$dips$"$ chocolates. The

manufacturer estimates the machine would be usable for five years but would require replacement of several key parts costing $$9,700$

at the end of the third year. After five years, the machine could be sold for $$3,500.$

The company estimates the cost to operate the machine will be $$7,700$ per year. The present labor$-$intensive method of dipping

chocolates costs $$37,000$ per year. In addition to reducing costs, the new machine will increase production by $4,000$ boxes of

chocolates per year. The company realizes a contribution margin of $$1\mathrm{.}20$ per box. A $12\%$ 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.

Complete this question by entering your answers in the tabs below.

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

Total annual net cash inflows