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Blossom Inc. manufactures snowsuits. Blossom is considering purchasing a new sewing machine at a cost of $2.45million. Its existing machine was purchased 5 years ago

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Blossom Inc. manufactures snowsuits. Blossom is considering purchasing a new sewing machine at a cost of $2.45million. Its existing machine was purchased 5 years ago at a price of $1.8 million; six months ago, Blossom spent $55,000 to keep it operational. The existing sewing machine can be sold today for $243,255. The new sewing machine would require a one-time, $85,000 training cost. Operating costs would decrease by the following amounts for years 1 to 7 : The new sewing machine would be depreciated according to the declining balance method at a rate of 20%. The salvage value is expected to be $379,700. This new equipment would require maintenance costs of $98.400 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: (ff net present value is negative then enter with negotive sign preceding the number es. 45 or parentheses e. . (45). Round present value answer to 0 decimal places, es. 125. For calculotion purpores, use 5 decimal. ploces as displayed in the foctor toble provided.) The new sewing machine would be depreciated according to the declining-balance method at a rate of 20%. The salvage value is expected to be $379,700. This new equipment would require maintenance costs of $98,400 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 net present value is negative then enter with nesative sign preceding the number eg. -45 or parentheses eg. (45). Round present value answer to 0 decimal places, eg. 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 Blossom should purchase the new machine to replace the existing machine? eTextbook and Media Attempts: 2 of 3 used Using multipie attempts will impact your score. 10\% score reduction after attempt 2

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