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Carla Vista inc. manufactures snowsuits. Carla Vista is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased

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Carla Vista inc. manufactures snowsuits. Carla Vista is considering purchasing a new sewing machine at a cost of $2.45 million. Its existing machine was purchased 5 years ago at a price of $1.8 million; six months apo. Carla Vista spent $55,000 to keep it cperational. The existing sewing machine can be sold today for $244,635. 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 dedining-balance method at a rate of 200 . The salvate valiae is: expected to be $379,700. This new equipment would require maintenance costs of $99,500 at the end of the fifth yean The cont of: capital is 9/6. The new sewing machine would be depreciated according to the declining-balance method at a rate of 2006 . The salvage value is expected to be $379,700. This new equipment would require maintenance costs of $99,500 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 of net present value is negative then enter with negative sian preceding the number eg. -45 or parentheses es. (45). Round present value answer to 0 decimal places, eg. 125 . For calculation purposes, use 5 decimal places as displayed in the factor toble provided.) Calculate the net present value. Net present value Determine whiether Carla Vista should purchase the new machine to replace the existing machine

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