PROBLEM 14-24 Basic Net Present Value Analysis [L01] he Sweetwat "dip chocolat pany is considering costs $120,000, The manufacturer estimates that able for 1 year. These parts would cost $9,000, including installation. After 12 years, the machine could be sold for $7,500 er Candy Company would like to buy a new machine that would automatically es. The dipping operation is currently done largely by hand. The machine the com- the machine would be us- 2 years but would require the replacement of several key parts at the end of the sixth t tTor 7.00590 inraeera s dhat the machinae The company estimates that the cost to operate the machine will be $7,000 per year. The pres- ent method of dipping chocolates costs $30,000 per year. In addition to reducing costs, the new ma- chine will increase production by 6,000 boxes of chocolates per year. The company realizes a contribution margin of $ 1.50 per box. A20% rate of return is required on all investments. Required: Ignore income taxes.) 1. 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 2