25 Capital Budgeting Question 3 of 6 -/3.5 : Hillsong in manufactures snowsuits. Hillsong is considering purchasing a new sewing machine at a cost of $2,45 million. Its existing machine was purchased five years ago at a price of $1.8 million six months ago, Hillsong spent $55.000 to keep it operational. The existing sewing machine can be sold today for $241.293. The new sewing machine would require a one-time, 585,000 training cost Operating costs would decrease by the following amounts for years 1 to 7 Year 1 $390.800 2 400.900 3 410.600 4 425.200 5 433.000 6 434,600 7 436,500 ENG db 4:39 AM 4/24.2002 Question 3 of 6 ./3.5 HII The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%, The salvage values expected to be $379.200. This new equipment would require maintenance costs of 597,100 at the end of the fifth year. The cost of capital is 9% Click here to view the factor table. Use the net present value method to determine the following: (If niet present value is nepative then enter with negative sin precediu the number es. -45 or parentheses es (45). Round present value answer to O decimal places, es. 125. For calculation purposes, use S decimal places as displayed in the factor table provided) Calculate the net present value. Net present value 5 Determine whether Hillsong should purchase the new machine to replace the existing machine? ING AM 4/24/2013 D son Mme Mente esos Ow Ch. 25 Capital Budgeting Question 3 of 6 -73.5 number -45 or parentheses cs: (45). Round present value answer to decimal places, 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided) Calculate the net present value Net present value Determine whether Hillsong should purchase the new machine to replace the existing machine e Textbook and Media Attempts: 0 of 2 used Subeste save for Lator ING CAM 4342022