Current Attempt in Progress Your answer is partially correct Monty 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 $162,550, and installation will require an additional $2.975. The machine has a useful life of 10 years and is expected to have a salvage value of $4.115 at that time. The variable cost to operate the new machine is $10.15 per carton compared to the current machine's variable cost of $10.25 per carton, and Monty Vita expects to pack 246,000 cartons each year. If the new machine is purchased. Monty Vita will avoid a required $10.175 overhaul of the current machine in four years. The current machine has a market value of $12.325 Click here to view the factor table (a) Calculate the net present value of the new packaging machine. Assume that Monty Vita uses an 8% discount rate. (For calculation purposes, use 4 decimal places as displayed in the foctor table provided and round final answer to 2 decimal places, eg 58.971.75. Enter negative amount using a negative sign preceding the number. es.-59,991 or parentheses eg. (59.9911) Net present value 21.191.75 (b) Do you recommend that Monty Vita purchase the new machine? Yes dar (c) Assume that Monty Vita has adopted a new 12% discount rate. Calculate the net present value of the new packaging machine. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 2 decimal places, eg 58,97175 Enter negative amount using a negative sign preceding the number, es-59,991 or parentheses es (59.9911) Net present value $ 8297.20 Do you recommend that Monty Vita purchase the new machine? No eTextbook and Media Save for Later Attempts: 1 of 3 used Submit