Question: NEED HELP! ACC 2020 question Your answer is partially correct. Try again. Caine Bottling Corporation is considering the purchase of a new bottling machine. The

NEED HELP! ACC 2020 question

NEED HELP! ACC 2020 question Your answer is partially correct. Try again.

Your answer is partially correct. Try again. Caine Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $206,278 and has an estimated useful life of 8 years with zero salvage value. Management estimates that the new bottling machine will provide net annual cash flows of $39,000. Management also believes that the new bottling 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 11%. Calculate the net present value. (If the net present value is negative, use either a negative sign preceding the number eg. 45 or parantheses eg (45). Round present value answer to 0 decimal places, e.g. 125.) How much would the reduction in downtime have to be worth in order for the project to be acceptable? (Round answer to 0 decimal places, e.g. 125.)

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