FULL SCREEN PRINTER VERSION BACK NEXT Brief Exercise 13.4 Michener Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $220,000 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 $38,000. 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 9%. Click here to view V table. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number e.g. -45 or parentheses c.g. (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to 0 decimal places, e.g. 1,250.) 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 S LINK TO TEXT LINK TO TEXT By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor, Question Attempts: 0 of 4 used