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 ago, Carla Vista spent $55,000 to keep it operational. The existing sewing machine can be sold today for $241,380. 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 $380,000. This new equipment would require maintenance costs of $96,200 at the end of the fifth year. The cost of capital is 9%. 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 $380,000. This new equipment would require maintenance costs of $96,200 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 negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round present value answer to 0 decimal places, e.g. 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 Carla Vista should purchase the new machine to replace the existing machine? TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 0 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 1 & & & & & & & & & & \\ \hline 2 & 8160 & 0 & 1.123 & 1.144 & 0 & 0 & 0 & 10 & 10 & 1.32250 \\ \hline 3 & 2486 & 15763 & 1.19102 & 1.22504 & .25971 & 1.29503 & 1.33100 & 63 & 93 & 2088 \\ \hline 4 & 1.16986 & .21551 & 1.26248 & 1.31080 & 1.36049 & 1.41158 & 1.46410 & 1.51807 & 1.57 & 1.74901 \\ \hline 5 & 1.21665 & 1.27628 & 1.33823 & 1.402 & 1.46933 & 1.53862 & 1.61051 & 1.68506 & 1.76234 & 2.01136 \\ \hline 6 & & & & & & & & & & \\ \hline 7 & & 10 & & & & & & & & \\ \hline 8 & 1.36857 & .47746 & 1.59385 & 1.71819 & 1.85093 & 1.99256 & 2.14359 & 2.30454 & 2.47596 & 3.05902 \\ \hline 9 & 1.42331 & .55133 & 1.68 & 1.83 & 1.99 & 2.17 & 95 & 2.5 & 2.7 & 3.51788 \\ \hline 10 & 1.48 & 9 & 1.7 & 1.9 & & 2.3 & 74 & 2.8 & & 556 \\ \hline 11 & & & & & & & & & & 39 \\ \hline 12 & 1.60103 & 86 & 2.01 & 2.25 & & 2.81 & 43 & 3.4s & 3.8s & 5.35025 \\ \hline 13 & 1.66507 & 1.88565 & 2.13293 & 2.40985 & 2.71962 & 3.06581 & 3.45227 & 3.88328 & 4.36349 & 6.15279 \\ \hline 14 & 73168 & 97993 & 2.26090 & 2.57853 & 2.93719 & 3.34173 & 3.79750 & 4.31044 & 4.88 & 7.07571 \\ \hline 15 & 1. & 2.07 & 2.3 & 2.7 & & 3.6 & 4.1 & 4.7 & 5.4 & 706 \\ \hline 16 & & & & & & & & & & 62 \\ \hline 17 & 47. & 9202 & & & & 4.3 & 47 & & & 10.76126 \\ \hline 18 & 2582 & 40662 & 2 & 3 & 3. & 4.7 & 92 & 55 & 76 & 12.37545 \\ \hline 19 & 10685 & 2.52695 & 3.02560 & 3.61 & & 5.1 & 6.11591 & 7.26 & 8.61276 & 14.23177 \\ \hline 20 & 2.19112 & 2.65330 & 3.20714 & 3.86968 & 4.66096 & 5.60441 & 6.72750 & 8.06231 & 9.64629 & 16.36654 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 TABLE 3 Present Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Periods \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & .96154 & .95238 & .94340 & 0.93458 & .92593 & .91743 & .90909 & .90090 & .89286 & .86957 \\ \hline 2 & .92456 & 90703 & .89000 & 0.87344 & .85734 & .84168 & .82645 & .81162 & .79719 & .75614 \\ \hline 3 & .88900 & .86384 & .83962 & 0.81630 & .79383 & .77218 & .75132 & .73119 & .71178 & .65752 \\ \hline 4 & .85480 & .82270 & 79209 & 0.76290 & .73503 & .70843 & .68301 & 65873 & .63552 & .57175 \\ \hline 5 & .82193 & .78353 & .74726 & 0.71299 & 68058 & 64993 & 62092 & .59345 & .56743 & .49718 \\ \hline 6 & .79031 & .74622 & .70496 & 0.66634 & 63017 & .59627 & .56447 & .53464 & .50663 & .43233 \\ \hline 7 & .75992 & .71068 & .66506 & 0.62275 & .58349 & .54703 & .51316 & .48166 & .45235 & 37594 \\ \hline 8 & .73069 & .67684 & .62741 & 0.58201 & .54027 & .50187 & .46651 & .43393 & .40388 & 32690 \\ \hline 9 & .70259 & 64461 & .59190 & 0.54393 & .50025 & .46043 & .42410 & .39092 & .36061 & .28426 \\ \hline 10 & .67556 & .61391 & .55839 & 0.50835 & .46319 & .42241 & .38554 & .35218 & .32197 & .24719 \\ \hline 11 & 64958 & .58468 & .52679 & 0.47509 & .42888 & .38753 & .35049 & .31728 & .28748 & 21494 \\ \hline 12 & 62460 & .55684 & .49697 & 0.44401 & .39711 & .35554 & .31863 & .28584 & .25668 & .18691 \\ \hline 13 & .60057 & .53032 & .46884 & 0.41496 & .36770 & .32618 & .28966 & .25751 & .22917 & .16253 \\ \hline 14 & .57748 & .50507 & .44230 & 0.38782 & .34046 & 29925 & .26333 & .23199 & .20462 & .14133 \\ \hline 15 & .55526 & .48102 & .41727 & 0.36245 & .31524 & .27454 & 23939 & 20900 & .18270 & .12289 \\ \hline 16 & .53391 & .45811 & .39365 & 0.33873 & 29189 & .25187 & .21763 & .18829 & .16312 & 10687 \\ \hline 17 & .51337 & .43630 & .37136 & 0.31657 & .27027 & .23107 & 19785 & .16963 & .14564 & .09293 \\ \hline 18 & .49363 & .41552 & .35034 & 0.29586 & .25025 & 21199 & .17986 & .15282 & .13004 & .08081 \\ \hline 19 & .47464 & .39573 & .33051 & 0.27615 & 23171 & 19449 & .16351 & .13768 & .11611 & 07027 \\ \hline 20 & 45639 & 37689 & .31180 & 0.25842 & 21455 & .17843 & .14864 & .12403 & 10367 & 06110 \\ \hline \end{tabular} TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \begin{tabular}{c} (n) \\ Payments \end{tabular} & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & .96154 & .95238 & .94340 & 0.93458 & .92593 & .91743 & .90909 & .90090 & .89286 & .86957 \\ \hline 2 & 1.88609 & 1.85941 & 1.83339 & 1.80802 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2.77509 & 2.72325 & 2.67301 & 2.62432 & 2.57710 & 2.53130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 3.54595 & 3.46511 & 3.38721 & 3.31213 & 3.23972 & 3.16986 & 3.10245 & 3.03735 & 2.85498 \\ \hline 5 & 4.45182 & 4.32948 & 4.21236 & 4.10020 & 3.99271 & 3.88965 & 3.79079 & 3.69590 & 3.60478 & 3.35216 \\ \hline 6 & 5.24214 & 5.07569 & 4.91732 & 4.76654 & 4.62288 & 4.48592 & 4.35526 & 4.23054 & 4.11141 & 3.78448 \\ \hline 7 & 6.00205 & 5.78637 & 5.58238 & 5.38929 & 5.20637 & 5.03295 & 4.86842 & 4.71220 & 4.56376 & 4.16042 \\ \hline 8 & 6.73274 & 6.46321 & 6.20979 & 5.97130 & 5.74664 & 5.53482 & 5.33493 & 5.14612 & 4.96764 & 4.48732 \\ \hline 9 & 7.43533 & 7.10782 & 6.80169 & 6.51523 & 6.24689 & 5.99525 & 5.75902 & 5.53705 & 5.32825 & 4.77158 \\ \hline 10 & 8.11090 & 7.72173 & 7.36009 & 7.02358 & 6.71008 & 6.41766 & 6.14457 & 5.88923 & 5.65022 & 5.01877 \\ \hline 11 & 8.76048 & 8.30641 & 7.886887 & 7.49867 & 7.13896 & 6.80519 & 6.49506 & 6.20652 & 5.93770 & 5.23371 \\ \hline 12 & 9.38507 & 8.86325 & 8.38384 & 7.94269 & 7.53608 & 7.16073 & 6.81369 & 6.49236 & 6.19437 & 5.42062 \\ \hline 13 & 9.98565 & 9.39357 & 8.85268 & 8.35765 & 7.90378 & 7.48690 & 7.10336 & 6.74987 & 6.42355 & 5.58315 \\ \hline 14 & 10.56312 & 9.89864 & 9.29498 & 8.74547 & 8.24424 & 7.78615 & 7.36669 & 6.98187 & 6.62817 & 5.72448 \\ \hline 15 & 11.11839 & 10.37966 & 9.71225 & 9.10791 & 8.55948 & 8.06069 & 7.60608 & 7.19087 & 6.81086 & 5.84737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 9.44665 & 8.85137 & 8.31256 & 7.82371 & 7.3 & 6.97399 & 5.95424 \\ \hline 17 & 12.16567 & 11.27407 & 10.47726 & 9.76322 & 9.12164 & 8.54363 & 8.02155 & 7.54879 & 7.11963 & 6.04716 \\ \hline 18 & 12.65930 & 11.68959 & 10.82760 & 10.05909 & 9.37189 & 8.75563 & 8.20141 & 7.70162 & 7.24967 & 6.12797 \\ \hline 19 & 13.13394 & 12.08532 & 11.15812 & 10.33560 & 9.60360 & 8.95012 & 8.36492 & 7.83929 & 7.36578 & 6.19823 \\ \hline 20 & 13.59033 & 12.46221 & 11.46992 & 10.59401 & 9.81815 & 9.12855 & 8.51356 & 7.96333 & 7.46944 & 6.25933 \\ \hline \end{tabular}